Walgreens Boots Alliance (WBA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on March 3. Analyst Michael Cherny from Leerink Partners reiterated a Hold rating on the stock and has a $11.50 price target.
Michael Cherny has given his Hold rating due to a combination of factors surrounding the potential acquisition of Walgreens Boots Alliance. The reported takeout price for the company is slightly below previous analyses, which indicated challenges in achieving a solid return at higher valuation levels. This uncertainty, coupled with the speculative nature of the acquisition reports, leads to a cautious outlook.
Furthermore, the potential deal’s structure, where Sycamore might retain the US pharmacy business while divesting other parts, adds complexity to the company’s future prospects. Given these uncertainties and the limited upside potential, Cherny maintains a Market Perform rating, reflecting a neutral stance on the stock’s near-term performance.
In another report released on February 28, Evercore ISI also maintained a Hold rating on the stock with a $12.00 price target.