Walgreens Boosts Alliance (WBA) PT Lowered to $52 at Deutsche Bank
Deutsche Bank analyst George Hill lowered the price target on Walgreens Boosts Alliance (NASDAQ: WBA) to $52.00 (from $55.00) while maintaining a Hold rating following results.
The analyst commented, "Walgreens reported strong FQ3 results, mostly contributed by its solid execution on COVID-19 vaccine administration during the quarter. Total revenue of $34.0B (+10% ex. FX) came in slightly ahead of the Street’s $33.8B as the 9.8% increase in prescriptions filled (6% benefit from vaccine administration), the retail recovery from rebounding foot traffic, and the company’s wholesale joint venture in Germany drove solid growth in both of the U.S. and international segments. Higher gross margin benefited by the vaccine and favorable product mix on the retail side as well as the continued cost-containment effort offset the slightly elevated SG&A from COVID-19-driven expenses and higher growth investments, delivering adjusted EPS from continuing operations of $1.38 versus the consensus of $1.17. WBA administered 17 million doses of vaccines in the quarter, slightly higher than our estimate of 16 million."