Walgreens Boots Alliance (NASDAQ:WBA) has agreed to settle a lawsuit related to its involvement in the opioid epidemic in the state of West Virginia. The pharmacy giant is expected to make a payment of about $83 million to the state over an eight-year period.
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Walgreens was accused of oversupplying opioids in the state. In a release, West Virginia Attorney General Patrick Morrisey said that the state was hit hard by the crisis and the money collected from these settlements will be used to subside the issues caused by the opioid crisis.
So far, Morrisey has entered into settlements with Walmart (WMT), CVS Health (CVS), Rite Aid (RAD), and Walgreens. Last September, Walmart, and CVS agreed to a settlement of $65.1 million and $82.5 million, respectively. Further, Rite Aid resolved a lawsuit with similar claims for $30 million. The last trial with Kroger (KR) is expected to happen in June this year.
These opioid settlements continue to have a considerable impact on Walgreens’ bottom line. The company recently reported a loss in the first quarter of Fiscal Year 2023 due to a $6.5 billion pre-tax charge relating to the opioid litigation settlement.
What is the Price Target for Walgreens?
The average WBA stock price target is currently $43.71, which implies 22.8% upside potential. Turning to Wall Street, analysts seem to be cautiously optimistic about the stock, which has a Moderate Buy rating based on two Buys and five Holds. Shares have gained about 8% in the past three months.
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