Walgreens lower for third straight session as Baird downgrades to Neutral
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The shares of Walgreens Boots Alliance (WBA -2.4%) have declined on Friday for the third consecutive session as the market reacts to the companyâs 2Q FY22 results, in which the pharmacy retail chain reiterated its earnings guidance.

Post quarterly release, Robert W. Baird has downgraded the stock to Neutral from Outperform, arguing, among other things, that the uncertainty over the companyâs core EPS run rate will continue for a few more quarters. The price target set to $51 per share implies a premium of ~14% to the last close.
However, Baird analyst Eric Coldwell welcomed certain actions the management has launched with an eye on the future, noting, âWe remain committed believers that WBA is taking appropriate steps for a better future.â
âDespite a positive long-term bias, WBA is simply too complicated at present,â the analyst added, arguing that a positive move is unlikely to last long except for the Boots transaction.
As part of a strategic review of its business, Walgreens (NASDAQ:WBA) is weighing a potential sale of Boots, the companyâs U.K. drugstore/beauty chain.