Walgreens Boots Alliance price target lowered to $7.50 from $11 at BofA

BofA analyst Allen Lutz lowered the firm’s price target on Walgreens Boots Alliance to $7.50 from $11 and keeps an Underperform rating on the shares. The firm is reducing its FY25 EPS estimate to $1.75 from $2.23, due in large part to lower U.S. Retail Pharmacy EBIT, and reducing its FY26 EPS forecast to $1.70 from $2.47 for the same reason as well as incrementally higher interest expense, says the analyst. The firm adds that Walgreens is under a meaningful debt burden and has not had success in monetizing its assets to date and BofA sees growing risk to the current dividend if the company is not able to improve operational performance.