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Walgreens reaches preliminary settlement in shareholder suit

EditorLina Guerrero
Published 29/11/2024, 22:18
WBA
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DEERFIELD, IL – Walgreens Boots Alliance, Inc. (NASDAQ:WBA), a $7.8 billion market cap healthcare retailer generating over $147 billion in annual revenue, has reached a preliminary court-approved settlement in a shareholder derivative lawsuit, according to a recent filing with the Securities and Exchange Commission (SEC). The lawsuit, Clem v. Skinner et al., No. 1:21-cv-00406 (D. Del.), was initially filed by a shareholder and has been pending since 2021.

On Monday, the court granted preliminary approval for the settlement of the case, which had been proposed earlier in the year. The stipulation and agreement of the settlement were dated July 9, 2024, and the notice of pendency and proposed settlement of the shareholder derivative action was preliminarily approved by the court on November 25, 2024.

In other recent news, Walgreens Boots Alliance has been the subject of several analyst adjustments following the release of its fourth-quarter fiscal year 2024 results and fiscal year 2025 projections. TD Cowen has retained a Buy rating for Walgreens but reduced the price target to $14 due to revised earnings per share (EPS) projections for fiscal year 2025. The firm anticipates an EPS of $1.54 for FY25, a reduction from the previous estimate of $1.71. Despite this, the firm projects a return to growth in FY27.

Mizuho (NYSE:MFG) maintained its Neutral stance on Walgreens, keeping the price target steady at $10.00. The firm's projections align with the company's FY25 adjusted EPS guidance range of $1.40 to $1.80. Leerink Partners increased its price target for Walgreens from $9.00 to $10.00, maintaining a Market Perform rating. The firm noted the company's strategic updates, including the announcement of 1,200 store closures.

BofA Securities maintained its Underperform rating on Walgreens with a steady price target of $7.50, citing persistent challenges despite the company's cost-cutting measures. Deutsche Bank (ETR:DBKGn) lowered its price target for Walgreens to $10.00, maintaining a Hold rating due to concerns raised by the company's recent financial performance and future guidance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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