On Tuesday, BofA Securities adjusted its outlook on Walgreens Boots Alliance (NASDAQ:WBA), reducing the stock price target to $22 from the previous $23 while keeping an Underperform rating on the stock. The move comes as the market anticipates the company's second-quarter earnings, which are expected to shed light on the new CEO's strategy and the performance of the core pharmacy business.
The investment firm's analyst expects Walgreens' earnings to be slightly below the consensus estimate, with a projected $0.81 per share compared to the general expectation of $0.82 for the quarter. Furthermore, the firm's full-year forecast for fiscal year 2024 is also below the Street's expectations, at $3.18 versus $3.27.
The analyst's stance remains cautious, with emphasis on the need for more details regarding Walgreens' future direction. The stock price objective has been adjusted to $22 in light of the desire for further information on the company's new strategic approach.
Walgreens is heading into a period of transition, with the market keenly awaiting the second-quarter report as an indicator of the company's trajectory under new leadership. Investors and analysts alike will be looking for signs of how the pharmacy giant plans to navigate the challenges and opportunities ahead.
The current assessment by BofA Securities indicates a watchful approach to Walgreens' stock, as the financial community evaluates the impact of the new CEO's strategies on the company's long-term growth and profitability.
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