Pivotal Research Reiterates a Hold Rating on Walgreens Boots Alliance (WBA)


Pivotal Research analyst Ajay Jain reiterated a Hold rating on Walgreens Boots Alliance (NASDAQ: WBA) today and set a price target of $72. The company’s shares closed on Friday at $73.50.

Jain observed:

“We are raising our price target to $72 (from $60) based on WBA’s historical trading multiple. WBA’s core earnings were flat in the latest quarter and we expect the same flat trend in FY19. While our estimates don’t include the earnings contribution of Amerisource Bergen, after accounting for the impact of share buybacks and assuming a similar level of equity earnings from ABC compared to FY18, we’re comfortable with the preliminary EPS guidance of $6.40-$6.70 for FY19. Comparisons will improve but still expect some lingering margin pressure – We think a key factor on why the results have been well received so far is the mgt. commentary on the relative impact of specialty and the FEP contract which Walgreen’s is set to anniversary on Jan. 1.”

According to TipRanks.com, Jain is a 4-star analyst with an average return of 10.5% and a 58.2% success rate. Jain covers the Services sector, focusing on stocks such as Performance Food Group, US Food Holdings Corp, and United Natural Foods.

Walgreens Boots Alliance has an analyst consensus of Moderate Buy, with a price target consensus of $76.17, which is a 3.6% upside from current levels. In a report issued on October 12, Citigroup also maintained a Hold rating on the stock with a $76 price target.

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Walgreens Boots Alliance’s market cap is currently $72.94B and has a P/E ratio of 17.17. The company has a Price to Book ratio of 2.63.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is neutral on the stock.

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Walgreens Boots Alliance, Inc. engages in providing drug store services. The company operates through the following segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale.

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