Shares of Walgreens Boots Alliance Inc WBA traded higher after Wednesday's market open, but gave up its gains despite an upgrade by analysts at Cowen.
In a report published Wednesday, Cowen and Company analyst Charles Rhyee upgraded Walgreens to Outperform from Market Perform with a price target boosted to $104 from a previous $90.
The Upgrade
"On Walgreens' F3Q15 earnings call, management noted it reaped certain benefits of its cost reduction program earlier than expected," Rhyee wrote. "We think realizing benefits sooner than expected should magnify the impact of the cost reduction program given its compounding nature."
Brands such as Liz Earle are seeing success in Europe and Boots generates more gross profit dollars from front-end sales than it does from pharmacy sales. The analyst added that over the medium term, proprietary health and beauty brands can achieve a penetration rate of roughly 5 percent.
Acquisitions On The Horizon?
Looking Forward
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