Drugstore chain Walgreens Boots Alliance (NASDAQ:WBA), perhaps better known as “Walgreens,” made a splash in Friday’s trading by announcing its choice for its new CEO. The move resonated with investors in a big way, and as a result, Walgreens is up over 5% in Friday afternoon’s trading.
While this isn’t the final decision just yet, Walgreens is looking to pull out the big chair for none other than former Cigna (NYSE:CI) brass Tim Wentworth. Walgreens may check with some other possible offers first, but right now, Wentworth is the front-runner. Neither Wentworth himself nor a Walgreens representative would comment on the matter, however. Wentworth has been retired since 2021, though he’ll be operating under a noncompete agreement until February 2024.
That’s not all that’s going on, though; if Wentworth gets in, he’ll be in charge of a significantly pared-down Walgreens. Between Walgreens, CVS (NYSE:CVS), and Rite Aid (NYSE:RAD), the trio plans to shutter a whopping 1,500 locations over the next several months. The reason? A combination of factors starting with a gunshy consumer base that’s increasingly strapped due to high inflation and stagnant wages. From there, it extends to some of the stores themselves, which haven’t been updated in years and often suffer from “bad lighting” or their own responses to increasing levels of theft.
Is Walgreens Stock a Buy, Sell, or Hold?
Turning to Wall Street, Walgreens Boots Alliance stock is rated a Hold, thanks to one Buy rating, five Holds, and two Sells. Further, Walgreens Boots Alliance stock offers investors 37.62% upside potential on its average price target of $30.29.
