Peeling Back The Layers: Exploring Walgreens Boots Alliance Through Analyst Insights

Throughout the last three months, 4 analysts have evaluated Walgreens Boots Alliance WBA, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $23.0, a high estimate of $27.00, and a low estimate of $20.00. Observing a downward trend, the current average is 8.0% lower than the prior average price target of $25.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of Walgreens Boots Alliance by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Walgreens Boots Alliance. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Walgreens Boots Alliance compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Walgreens Boots Alliance's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Walgreens Boots Alliance's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Walgreens Boots Alliance analyst ratings.

All You Need to Know About Walgreens Boots Alliance

Walgreens Boots Alliance is one of the largest retail pharmacy chains in the U.S., 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 U.S. 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.

A Deep Dive into Walgreens Boots Alliance's Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Walgreens Boots Alliance's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.96% as of 30 November, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Walgreens Boots Alliance's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -0.18%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Walgreens Boots Alliance's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -0.34%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Walgreens Boots Alliance's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.07%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Walgreens Boots Alliance's debt-to-equity ratio is below the industry average at 1.73, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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