Is Walgreens Boots Alliance Stock Going to $20? 1 Wall Street Analyst Thinks So.
After falling from around $36 per share to reach near $22 in the last 12 months, there may not be much of a reprieve in sight for shareholders of Walgreens Boots Alliance (NASDAQ: WBA). According to an updated price target issued by financial analyst Daniela Bretthauer at , the stock could fall even further soon, to $20.
Given that Bretthauer's prior estimate called for the pharmacy chain's shares to trade around $27, her update signifies increasing bearishness about its prospects for growth and profitability. And there's more than one culprit for darkening sentiment.
The past three years have been characterized by Walgreens' struggle to maintain a positive operating margin while it attempts to enter the primary care business. At the same time, its debt load of $34.7 billion is getting concerning, and the last few quarters have been characterized by selling off hundreds of millions of its investments to pay down its liabilities. Underscoring its increasingly fraught finances, Walgreens' quarterly dividend was cut by nearly half at the start of this year.
Source Fool.com