Navigating 5 Analyst Ratings For Walgreens Boots Alliance

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Walgreens Boots Alliance WBA in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $11.1, with a high estimate of $16.00 and a low estimate of $7.00. Experiencing a 27.92% decline, the current average is now lower than the previous average price target of $15.40.

Decoding Analyst Ratings: A Detailed Look

The standing of Walgreens Boots Alliance among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Walgreens Boots Alliance. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Walgreens Boots Alliance compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Walgreens Boots Alliance's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Walgreens Boots Alliance's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Walgreens Boots Alliance analyst ratings.

About Walgreens Boots Alliance

Walgreens Boots Alliance is one of the largest retail pharmacy chains in the US, with over 8,500 locations. Nearly three quarters of Americans live within five miles of a Walgreens location. Roughly two thirds of revenue is generated from prescription drug sales; Walgreens makes up 20% of total prescription revenue in the US. Walgreens also generates sales from retail products (general wellness consumables and its own branded merchandise), European drug wholesale, and healthcare. With more locations incorporating additional services like Health Corner and Village Medical, Walgreens creates an omnichannel experience for patients and positions itself as a one-stop healthcare provider.

Walgreens Boots Alliance's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Walgreens Boots Alliance's revenue growth over a period of 3 months has been noteworthy. As of 31 May, 2024, the company achieved a revenue growth rate of approximately 2.64%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.95%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Walgreens Boots Alliance's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.54%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.41%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Walgreens Boots Alliance's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.4, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.