Walgreens Stock Surges On Analyst Revisions After Strong Q1 Earnings: Retail Sentiment Brightens
Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day ago.
Shares of Walgreens Boots Alliance ($WBA) have risen nearly 24% in the past five days as the pharmacy retailer gets price target revisions following its strong first-quarter quarter performance, lifting retail sentiment.
On Monday, BofA raised the price target to $8.50 from $7.50 with an ‘Underperform’ rating following its "better-than-expected quarter against relatively low expectations," The Fly.com reported.
According to the firm, its price action reflected the improving margin dynamics in the company’s U.S. retail pharmacy segment but saw limited “clarity on the trajectory of retail pharmacy profitability,” said the report.
Separately, TD Cowen also raised its price target to $15 from $14 with a ‘Buy’ rating based on its view that the first quarter results were a signal the company’s management is making progress in its long-term turnaround, Fly.com reported.
Last week, Evercore ISI analyst Elizabeth Anderson raised the firm’s target to $12 from $9 with an ‘In-Line’ rating.
Walgreens said it would maintain its fiscal 2025 adjusted EPS guidance of $1.40 to $1.80.
Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day ago. Message volumes climbed into the ‘high’ zone compared to normal.
WBA sentiment meter and message volume on Jan 12 as of 4:50 am ETOn Friday, Walgreens recorded Q1 revenues of $39.46 billion, beating consensus estimates of $37.42 billion. Its EPS came in at $0.51, above the consensus estimate of $0.38.
"Our first quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models," Tim Wentworth, CEO of Walgreens said in a statement.
Separately, a Stocktwits poll asked retail about the bounce back in the company’s shares and what may pose as a threat to its turnaround efforts. About 24% of respondents voted “company’s leadership structure” as the leading factor, followed by “shrinking prescription reimbursements.”
Walgreens stock is up 26.19% year-to-date.
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