UPDATE: Morgan Stanley Downgrades Walgreens Boosts Alliance (WBA) to Underweight

(Updated - December 16, 2021 7:38 AM EST)

Morgan Stanley analyst Ricky Goldwasser downgraded Walgreens Boosts Alliance (NASDAQ: WBA) from Equalweight to Underweight with a price target of $49.00 (from $56.00).

The analyst comments "We now model no EPS growth through FY23, which combined with low confidence in the company’s emerginghealthcare strategy, takes us to Underweight on WBA shares. We have lowered our PT by 10% to $49 on a combination of a lower multiple (to 10.0x from 10.7x, though still above the current multiple of 9.6x) and 5% reduction in 2023 EPS. We raised questions about WBA’s new healthcare strategy following the Analyst Day, which was light on details on how the strategy would contribute a projected 60% of EPS growth by FY25 (see here). We left the event with two main concerns about the Health business: (1) a relatively inexperienced management team and (2) the lack of disclosure on achieving its high targets, which could keep the stock’s multiple near the lower end of history. "

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 $49.66 yesterday.

You May Also Be Interested In

• Quest Diagnostics (DGX) PT Raised to $145 at Evercore ISI
• Boston Beer Company (SAM) PT Lowered to $325 at Jefferies
• Nomura/Instinet Downgrades Gujarat State Petronet (GUJS:IN) to Reduce