Evercore ISI on Walgreens Boosts Alliance (WBA): 'Add’l Partners May Be Needed'

Evercore ISI analyst Elizabeth Anderson reiterated an In Line rating and $8.00 price target on Walgreens Boosts Alliance (NASDAQ: WBA)

The analyst comments "What Happened? This afternoon the WSJ reported that WBA is in talks with Sycamore Partners to potentially be acquired. The report notes that should conversations progress, WBA’s acquisition could be completed as early as next year. In addition, WSJ reports that individuals familiar with the matter suggested that given the size of such a deal, Sycamore would likely sell off pieces of the business or work with partners on the deal. Our Take: While it makes sense that a retail-focused investor like Sycamore Partners may be interested in WBA particularly given valuation pressures the Company has seen over the past several years, the size of deal (relative to Sycamore’s prior deals in retail) likely points to a need for additional partners to complete this deal. Ultimately, we think the transaction would not be without risk, but would be a positive for public shareholders given ongoing business headwinds. Should a deal come to fruition, we would anticipate that a restructuring of WBA may likely be easier outside of public eyes, particularly in US Retail Pharmacy as well as the profitability ramp in US Healthcare."

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 $8.85 yesterday.

You May Also Be Interested In

• Stripe, Advent In Talks To Buy Paypal - WSJ
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy