Walgreens Boots Alliance price target lowered to $9 from $19 at Jefferies

Jefferies analyst Brian Tanquilut lowered the firm’s price target on Walgreens Boots Alliance (WBA) to $9 from $19 and keeps a Hold rating on the shares. While shares have moved higher following a Q4 report that “dispelled” some acute near-term fears and “was enough for a short squeeze,” the firm believes management’s FY25 earnings cadence commentary points to persistent fundamental pressure. The firm is also skeptical that the planned 1,200 store closures will “generate enough AOI to stem the core biz bleeding” and believes outyear Street estimates are, “once again, too high,” the analyst tells investors. However, the firm adds that the potential for asset sales to unlock value and cash flow “could bring pain to shorts.”