Walgreens Boots Alliance (WBA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Charles Rhyee from TD Cowen maintained a Buy rating on the stock and has a $37.00 price target.
Charles Rhyee has given his Buy rating due to a combination of factors surrounding the Walgreens Boots Alliance’s strategic initiatives and financial transparency improvements. Rhyee anticipates that the company’s management will provide insights into the strategic review’s primary areas, including the future role of retail, evaluation of the company’s various assets, and plans to broaden pharmacy services. He also expects the company to enhance its financial reporting, which will offer greater clarity on the core business drivers, particularly around the fiscal year 2025 headwinds and profit metrics for the U.S. Healthcare segment.
Additionally, despite a slower start to the year in prescription growth, Rhyee notes that the company has outperformed the market in gaining market share and projects an acceleration in the second half of the fiscal year. Adjustments to the fiscal year 2024 and 2025 earnings per share estimates reflect a cautiously optimistic outlook. Rhyee’s $37 price target, which is based on a discounted cash flow analysis, implies that the stock has the potential to trade at approximately 10 times the estimated calendar year 2024 earnings per share of $3.50, further supporting the Buy rating.
According to TipRanks, Rhyee is a 4-star analyst with an average return of 5.4% and a 52.84% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as R1 RCM, Evolent Health, and CVS Health.
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Walgreens Boots Alliance (WBA) Company Description:
Retail pharmacy leader Walgreens Boots Alliance (NASDAQ:WBA) operates through its namesake brand Walgreens in the U.S. and Boots in the U.K. In addition, it owns retail and business brands including the No7 Beauty Company, Duane Reade, Ahumada in Chile, and Benavides in Mexico. The company also targets equity investments in healthcare, pharmacy, and retail and has a presence in over 25 countries with more than 450,000 employees.
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