On Wednesday, Barclays maintained its underweight rating on Walgreens Boots Alliance (NASDAQ:WBA) shares, keeping the price target fixed at $21.00. The decision comes after a thorough review of the company's US Retail Pharmacy revenue projections and an update to its debt schedule components, including elements such as floating rate debt and finance leases.
The financial institution has adjusted its fiscal year 2024 revenue and adjusted earnings per share (EPS) estimates for Walgreens. The new projection for revenue is set at $143.6 billion, a slight decrease from the previous estimate of $144.7 billion. Similarly, the adjusted EPS forecast has been revised downward from $3.30 to $3.26. This revision reflects anticipated lower US Retail Pharmacy revenues than initially expected.
The updated model by Barclays aims to provide a more detailed analysis of Walgreens' financial outlook, incorporating recent data and market trends that could impact the company's performance. The adjustments to the revenue and EPS forecasts are a result of this comprehensive model update.
Walgreens Boots Alliance is a leading pharmacy-led health and wellbeing company. It operates a widespread network of retail pharmacy stores in the US and internationally. The company's financial performance is closely watched by investors and analysts, as it serves as an indicator of the health sector's retail segment.
Barclays' reiteration of the underweight rating indicates a cautious perspective on the stock's potential performance relative to the market or sector average. The $21.00 price target is a reflection of this caution, suggesting that the firm does not foresee significant appreciation in Walgreens' stock price in the near term.
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