🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Walgreens Boots Alliance gains on JP Morgan upgrade amid new CEO era

EditorYael Jeanne Klempner
Published 10/23/2023, 06:54 PM
© Reuters.

Walgreens Boots Alliance (NASDAQ:WBA) gained 3.7% in early trading Monday following a rare upgrade of the pharmacy giant - its first of the year.

JP Morgan analysts upgraded the stock to Overweight from Neutral with a price target of $30, up from $27.

With Tim Wentworth assuming the role of CEO, the analysts see a "new era" for the company.

"We believe that Wentworth’s background within healthcare services, most recently Express Scripts and Cigna (NYSE:CI), suit him very well to manage WBA and work with key stakeholders," the analysts commented. "We believe the management combination of Wentworth and Driscoll (President of US Healthcare) should enable the company to propel it’s relationnships across healthcare."

The analysts highlight that while serving as CEO of Express Scripts from 2016 to 2018, the company consistently either met or exceeded adjusted EPS expectations in every quarter.

They add that the FY24 guidance has effectively communicated the various factors influencing the overall performance, with a particular focus on cost targets and the prospect of a smoother year ahead.

Meanwhile, the cash flow outlook is anticipated to see enhancements in FY24, with expectations of a potential dividend reduction already factored in and a strong emphasis on prioritizing debt reduction.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.