Evercore ISI reiterates Walgreens stock rating with $11.45 target

Investing.com - Evercore ISI maintained its In Line rating and $11.45 price target on Walgreens Boots Alliance (NASDAQ:WBA) stock on Thursday. The stock currently trades at $11.42, having posted a strong year-to-date gain of 21%. According to InvestingPro analysis, WBA appears fairly valued at current levels.

The research firm noted that the company’s quarterly results were largely in line with its previous estimates, prompting only modest adjustments to forecasts for the fourth quarter and fiscal years 2026-2027. The pharmacy giant maintains a substantial market presence with annual revenue of $152 billion and an overall Financial Health Score of "FAIR" based on InvestingPro’s comprehensive analysis.

Evercore ISI indicated that the earnings quality showed a level of adjustments roughly comparable to the same quarter last year, with primary adjustments excluding impacts from goodwill impairments, footprint optimization, and legal matters.

The firm’s price target of $11.45 aligns with the proposed acquisition price from Sycamore Partners, suggesting the research firm expects the deal to proceed as planned.

Evercore ISI stated that nothing in the recent results appeared likely to disrupt the ongoing Sycamore acquisition process, maintaining its neutral stance on the pharmacy retailer’s stock.

In other recent news, Walgreens Boots Alliance, Inc. has made several significant announcements impacting its operations and financial strategies. The company has settled a major opioid litigation case with the Department of Justice, agreeing to pay $300 million plus interest over a six-year period. This settlement resolves allegations related to the dispensing of opioids without admitting any wrongdoing. In a separate financial move, Walgreens has terminated two major credit agreements and launched a new $2.5 billion accounts receivable facility to repay existing debts. This restructuring involves agreements with Bank of America and Toronto Dominion, aimed at enhancing the company’s financial flexibility. Additionally, Walgreens has partnered with KFF for the largest-ever National HIV Testing Day, offering free rapid testing for HIV, syphilis, and hepatitis C at over 575 stores. This initiative highlights Walgreens’ commitment to public health, with support from national health organizations and the donation of over 22,000 rapid test kits. These developments reflect Walgreens’ ongoing efforts to address both financial and community health challenges.

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