Walgreens Boots Alliance (WBA) has announced a new partnership with software producer Veeva Systems (VEEV). The pharmaceutical holding company has been closing stores across the U.S. recently, which has sent shares down over the past week. However, this news shows that WBA is focused on a new chapter that could have long-term positive impacts for investors.
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This partnership will grant Walgreens Boots Alliance access to the Veeva Data Cloud and Veeva Clinical Platform, likely enabling it to better serve its customers.
What’s Happening with WBA Stock?
WBA and VEEV stocks rose today in pre-market trading, though both by less than 1%. WBA still seems to be struggling after a week of decline and an even worse past six months, during which it has fallen more than 45%.
Veeva, by contrast, has enjoyed a year of mostly growth, rising 10% for the same period and 12% for the year despite multiple dips. Partnering with Veeva could be the catalyst that helps Walgreens Boots Alliance finally stabilize and start making up the ground it has lost this year.
Peter Gassner, CEO of Veeva, discussed the mutually beneficial aspects of the partnership, stating “Partnering with Walgreens expands the breadth of data in Veeva Data Cloud, giving life sciences companies the high-quality data they need to better understand market trends and improve patient outcomes.”
Is WBA Stock a Buy, Sell or Hold?
Wall Street isn’t too optimistic about Walgreens Boots Alliance’s growth prospects. Analysts maintain a Hold consensus rating on WBA stock based on two Buys, seven Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 56% decline over the past year, the average WBA price target of $13.67 represents a 46.20% change from the last price of $9.35.
If news of this partnership generates actual growth for WBA stock, some of these analysts may adopt a more bullish mindset. Until then, though, it may be difficult to regard the company with much optimism as stores continue to close and share prices continue to decline.
