Skip to main content

Market Overview

Walgreens' Strong Quarter Will 'Build Confidence' In Stock: Macquarie


Walgreens Boots Alliance Inc (NASDAQ: WBA) reported strong third quarter earnings on Thursday, exceeding earnings and comparable store sales growth expectations. In fact, each operating segment surpassed consensus estimates. The results were driven by better than expected SG&A performance, aided by larger than anticipated gross profit dollar performance.

In a report issued late-Thursday, Macquarie analyst Bob Summers and his team reiterated an Outperform rating on the stock, raising their price target from $95 to $100, under the belief that the sturdy results, combined with robust growth opportunities and improved visibility, will continue to drive appreciation.

Related Link: Walgreens Q3 Earnings Beat Views, Shares Surge

The experts highlight a few other points relevant to Walgreens investors:

  • Full year EPS guidance was raised to a range of $3.70-$3.80 from $3.45-$3.65. Macquarie now expects earnings of $3.76 per share. For fiscal 2016, the firm anticipates earnings of $4.45 per share.
  • Stefano Pessina was appointed as the permanent CEO. The firm believes this is a “significant positive outcome.”
  • The analysts think “the merger’s transformative nature, initial success and optimism around the company remaining a participant in ongoing consolidation will generally support further multiple expansion.”
  • The firm also believes Walgreens is “a beneficiary in challenging markets as investors gravitate toward large cap stable brands and particularly companies exhibiting favorable earnings momentum.”

Shares of Walgreens are up more than 4 percent in Friday trading.

Latest Ratings for WBA

Jan 2021Credit SuisseMaintainsNeutral
Jan 2021BairdUpgradesNeutralOutperform
Sep 2020MizuhoMaintainsNeutral

View More Analyst Ratings for WBA
View the Latest Analyst Ratings


Related Articles (WBA)

View Comments and Join the Discussion!

Posted-In: Bob SummersAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Movers Trading Ideas

Latest Ratings

PTVERBC CapitalDowngrades14.0
AGIOJP MorganDowngrades54.0
PLUGJP MorganUpgrades65.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at