The pharmacy chain Walgreens Boots Alliance (NYSE:WBA) is on the brink of facing employee protests across its U.S. stores. More than 500 Walgreens store staff could stage a two-day walkout beginning today, October 9. The employees are citing unbearable working conditions, including understaffing, and safety concerns for patients as the reasons for the protests.
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Employees, including pharmacists, technicians, and support staff, could be a part of the walkout between October 9 and 11. Irrespective of their job description, the staff is asked to administer vaccine/flu shots to patients while also filling out prescription forms. Plus, newer technicians are not receiving adequate training. Reports suggest that employees have been complaining for a long time about the issues, but the management is not paying heed.
Meanwhile, WBA management said, “We are engaged and listening to the concerns raised by some of our team members… making significant investments in pharmacist wages and hiring bonuses to attract/retain talent in harder-to-staff locations.”
What is the Future of WBA Stock?
Ahead of WBA’s Q4 FY23 earnings set for October 12, J.P. Morgan analyst Lisa Gill cut the price target on WBA to $27 from $33 while maintaining a Hold rating. The five-star analyst changed the price target to reflect her revised outlook on Fiscal 2024 guidance. Gill believes the changing leadership team will impact the pharmacy chain’s outlook for the full year.
The consensus expectation for Q4’s adjusted earnings is pegged at $0.69 per share on revenues of $34.82 billion.
On TipRanks, Walgreens stock has a Hold consensus rating. This is based on one Buy, five Holds, and one Sell rating. Also, the average Walgreens Boots Alliance price target of $29.83 implies 36.8% upside potential from current levels. Year-to-date, WBA stock has lost 38.6%.
