TD Cowen affirms Buy on Walgreens shares, anticipates slight decline in respiratory season

EditorAhmed Abdulazez Abdulkadir
Published 2024-12-16, 11:04 a/m
WBA
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Looking ahead, TD (TSX:TD) Cowen estimates an adjusted EPS of $1.54 for fiscal year 2025 and $1.40 for fiscal year 2026, with no changes to these projections. InvestingPro analysis suggests WBA is currently fairly valued, with analyst targets ranging from $7 to $20 per share.

The $14.00 price target is grounded on a discounted cash flow (DCF) analysis, suggesting that Walgreens shares could trade at 9 times the projected adjusted EPS for fiscal year 2025, or 11 times the core EPS. For deeper insights into WBA's valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Looking ahead, TD Cowen estimates an adjusted EPS of $1.54 for fiscal year 2025 and $1.40 for fiscal year 2026, with no changes to these projections. InvestingPro analysis suggests WBA is currently fairly valued, with analyst targets ranging from $7 to $20 per share. The $14.00 price target is grounded on a discounted cash flow (DCF) analysis, suggesting that Walgreens shares could trade at 9 times the projected adjusted EPS for fiscal year 2025, or 11 times the core EPS. For deeper insights into WBA's valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Additionally, there is an expectation that Walgreens may announce benefits from successful negotiations with Pharmacy Benefit Managers (PBMs), potentially through reduced administrative fees. However, the exact financial impact of these negotiations remains uncertain.

With the respiratory season progressing as expected, slightly down from the previous year according to management's forecasts, the company's performance appears to be in line with these tempered expectations.

Looking ahead, TD Cowen estimates an adjusted EPS of $1.54 for fiscal year 2025 and $1.40 for fiscal year 2026, with no changes to these projections. InvestingPro analysis suggests WBA is currently fairly valued, with analyst targets ranging from $7 to $20 per share. The $14.00 price target is grounded on a discounted cash flow (DCF) analysis, suggesting that Walgreens shares could trade at 9 times the projected adjusted EPS for fiscal year 2025, or 11 times the core EPS. For deeper insights into WBA's valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Walgreens Boots Alliance (NASDAQ:WBA) has been under the spotlight due to potential acquisition talks with Sycamore Partners, as noted by analyst firms Mizuho (NYSE:MFG), Leerink Partners, and Evercore ISI. Mizuho and Leerink have maintained their respective neutral and market perform ratings on Walgreens, with a consistent price target of $10. The company's revenue has grown by 6.2% over the last twelve months to $147.7 billion.

RBC (TSX:RY) Capital Markets reduced its price target for Walgreens to $9, reflecting the company's anticipated challenges in the U.S. Retail Pharmacy sector. Additionally, Walgreens reached a preliminary settlement in a shareholder derivative lawsuit.

TD Cowen retained a buy rating for Walgreens but reduced the price target to $14 due to revised earnings per share (EPS) projections for fiscal year 2025. BofA Securities maintained its underperform rating on Walgreens with a steady price target of $7.50, citing persistent challenges despite the company's cost-cutting measures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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