Walgreens Boots Alliance price target lowered to $22 from $23 at Leerink

Leerink lowered the firm’s price target on Walgreens Boots Alliance to $22 from $23 and keeps a Market Perform rating on the shares ahead of quarterly results. For the quarter itself, the firm is forecasting adjusted EPS of 77c, below Visible Alpha consensus of 83c. For the core U.S. Retail Pharmacy segment, Leerink is forecasting adjusted EBIT of $767.5M, below consensus of $778.0M. Aside from results, the key focus for Walgreens is the path of strategic change under new CEO Tim Wentworth and what he views as the future of the portfolio, the firm argues. Leerink expects incremental datapoints/thoughts on the call although not exactly any “big bang” strategy change at this point in time. The valuation is depressed, limiting downside, but without upside catalysts and with questions about what the long-term core earnings base is for Walgreens, the firm sees risk/reward as balanced.