Walgreens Boosts Alliance (WBA) Likely in the Penalty Box Until October - Morgan Stanley

Morgan Stanley analyst Ricky Goldwasser reiterated an Equalweight rating and $60.00 price target on Walgreens Boosts Alliance (NASDAQ: WBA) after shares sold off 7.4% post its 3Q print on concerns over core earnings power.

The analyst sees shares being in the penalty box until 2022 guidance in early October. He stated "Key tailwinds to our analysis include: 1) US segment core growth in pharmacy assuming Rx growth, still down 90bps in 3Q from 2019 base line (excluding the vaccine impact), returns to 2019 levels (+$0.43-$0.64); 2) easier y/y comps associated with weak cold/flu season (+$0.27-$0.32); 3) lift of EU lockdowns, leading to international segment utilization slowly returning to pre-COVID level by August 2022 (+$0.27-$0.32); and 5) synergies from the German JV (+$0.05)."

For an analyst ratings summary and ratings history on Walgreens Boosts Alliance click here. For more ratings news on Walgreens Boosts Alliance click here.

Shares of Walgreens Boosts Alliance closed at $48.17 yesterday.

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