Walgreens adds another overhang after San Francisco opioid ruling – BofA
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A recent court ruling in San Francisco that held the pharmacy operator Walgreens Boots Alliance (NASDAQ:WBA) liable for the opioid crisis in the city has created another overhang for the company shares, Bank of America wrote in a research note.

In his judgment, U.S. District Judge Charles Breyer in San Francisco concluded on Wednesday that Walgreens (WBA) contributed to a âpublic nuisanceâ by failing to adequately monitor the suspicious opioid orders for nearly 15 years.
A subsequent trial will determine the financial penalty, and the company has said it will appeal the ruling.
The judgment follows a trial that started in April, and Walgreens (WBA) was the only defendant that failed to reach a settlement.
âThe announcement of liability, in particular being found to be a âpublic nuisance,â creates another negative headline and another overhang for WBA shares,â BofA analysts led by Michael Cherny wrote with an Underperform rating and a $40 per share target on the stock.
Citing negative sentiment surrounding Walgreensâ (WBA) challenges in the core business, including the waning COVID-related volumes in Retail and expansion of Walgreens Health, the analysts argue that the raft of overhangs continues to limit its multiple.
Walgreens (WBA) has underperformed the rival pharmacy operator CVS Health (CVS) and the broader market this year, as indicated in this graph.