Walgreens Boots Alliance price target lowered to $11 from $22 at BofA

BofA analyst Allen Lutz lowered the firm’s price target on Walgreens Boots Alliance to $11 from $22 and keeps an Underperform rating on the shares. Walgreens’ gross margins and earnings power are under significant pressure, driven by structural headwinds to pharmacy reimbursement and continued weakness in front-store sales, the analyst tells investors in a research note. Walgreens should benefit in the near-term from closed Rite Aid stores and accelerating the closure of up to 25% of its stores, but one quarter of stores are losing money and Walghreens most put pressure on pharmacy benefit managers, the firm says.