This post was just published on ZYX Buy Change Alert.
RAD is long from an average of $4.96 and 60% of the full core position size is being held. As of this writing in the after hours RAD is trading at $8.11. Partial profits have been taken as high as $7.38.
RAD and Envision Pharmaceutical Services have entered into a definitive agreement under which RAD will buy EnvisionRx for $2B. EnvisionRx is a Prescription Benefit Management Company. RAD is following in the footsteps of CVS. The transaction is expected to be accretive to RAD’s earnings per share in the first full year.
Until now, RAD has been a turn around story. Now is has pivoted to become a growth story.
The new zone is $6.33 to $7.37. Until now our target zone was $8 to $8.50 now this target has been met. Based on the transaction, we are raising the target zone to $11 to $12.40. The very long-term target remains $14 to $16.
What To Do Now?
Those in the stock may continue to hold.
Those not in the stock may consider scaling in on dips into the buy zone.
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