Walgreens disclosed $2.7B tax liability from IRS, says UBS

UBS analyst Kevin Caliendo says Walgreens Boots Alliance reported in its quarterly filing that the Internal Revenue Service had issued a report finding the company owes an additional $2.7B in taxes plus penalties and interest. The findings appear to be related to accounting treatment of options between 2014 and 2017, and Walgreens stated it intends to vigorously defend its prior accounting methodology, the analyst tells investors in a research note. The company told UBS that its own auditors and external counsel agree with its accounting treatment of the call option. The firm keeps a Neutral rating on the shares with a $22 price target.