Rite Aid shares rise as analyst talks sale

New York Shares of Rite Aid Corp. jumped more than 10% on Thursday after a UBS analyst said the company might be a takeover target for rivals Walgreens, CVS Caremark or Wal-Mart Stores, the Associated Press reported.

Analyst Neil Currie said each company would have good reason to consider buying at least some of Rite Aid's 4,800 stores. Although Rite Aid's sales are slumping and the company is saddled with billions in debt, a deal could help Wal-Mart, CVS and Walgreens expand into new markets, Currie said, and also could help Wal-Mart take a step forward in increasing its pharmacy business.

"Rite Aid is the last remaining major drug store asset in the U.S., with meaningful exposure to dense urban markets," Currie said. Based on other recent deals, he valued the company at about $10 billion.