Today’s Research Reports on Stocks to Watch: Rite Aid and Intercept Pharmaceuticals
U.S. markets continued to climb towards new record Friday, despite a disappointing jobs report. The Dow Jones Industrial Average increased 0.29 percent to close at 21,206.29, while the S&P 500 Index gained 0.37 percent to close at 2,439.07. On Friday, the Labor Department reported payrolls increased by a seasonally adjusted 138,000 in May, when compared to the previous month. The number was well short of economists’ expectations of 185,000, according to Reuters.
“Economies are still moving along just fine, and outside the US the trend has been improving at a greater pace.” said Nathan Thooft, co-head of global asset allocation at Manulife Asset Management. “Yes, there’s some complacency in the market, but there’s not a lot of concern either.”
RDI Initiates Coverage on:
Rite Aid Corp.
Intercept Pharmaceuticals Inc.
Rite Aid’s shares jumped 4.25 percent to close at $3.68 a share on Friday. The stock traded between $3.44 and $3.74 on volume of 23.74 million shares traded. Investors are eagerly awaiting the Federal Trade Commission’s decision on Walgreens Boots Alliance Inc.’s acquisition of Rite Aid Corp. Cowen analyst Charles Ryhee has recently reiterated an “outperform” rating on Rite Aid, but has lowered his price target on the stock to $4.70 from $6.75. Walgreens had agreed to acquire Rite Aid in October 2015. The companies reached a new agreement in January lowering the price and agreeing to divest up to 1,200 Rite Aid stores and certain additional related assets if required by the FTC. Shares of Rite Aid have fallen approximately 55.3 percent year-to-date.
Access RDI’s Rite Aid Research Report at:
Intercept Pharmaceuticals’ shares gained 5.32 percent to close at $119.22 a share on Friday. The stock traded between $113.85 and $121.00 on volume of 764,536 shares traded. On May 25th, the company announced that Health Canada granted a conditional approval for Ocaliva (obeticholic acid) for the treatment of primary biliary cholangitis (PBC). “Ocaliva is a farnesoid X receptor (FXR) agonist that will fill an important unmet need for patients who have an inadequate response to, or are unable to tolerate, the standard of care, UDCA, and therefore remain at significantly increased risk of liver failure, need for liver transplantation, or death.”, according to Intercept’s news release. Shares of Intercept Pharmaceuticals have gained approximately 9.73 percent year-to-date.
Access RDI’s Intercept Pharmaceuticals Research Report at:
Our Actionable Research on Rite Aid Corporation (NYSE:RAD) and Intercept Pharmaceuticals Inc. (NASDAQ:ICPT) can be downloaded free of charge at Research Driven Investing.
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