Walgreens Boots Alliance conference offers Deutsche Bank ‘increased faith’

By Sam Boughedda

Walgreens Boots Alliance (NASDAQ:-RRB- shares are up over 4% Friday after Deutsche Bank experts updated the stock to Purchase from Hold, raising the company’s cost target on the stock to $50 from $41.

In a note to customers, the experts discussed that they just recently hosted a conference with senior management at Walgreens, where “financiers’ focus was directly on the just recently revealed Summit/Village MD acquisition offer,” along with the business’s shift to a health care services business.

Previously today, it was revealed that Walgreens-backed VillageMD will obtain Top Health in an offer valued at $9 billion.

” We left from the conference with increased faith in the business’s capability to carry out on its care shipment method, which must result in favorable modifications and numerous growth for WBA shares,” the experts composed.

He included that the Top offer has actually typically been viewed as a favorable by financiers, and a crucial style in their conferences was Walgreens’ shift from a pharmacy-led health care organization to a more extensive customer health care services business with drug store as a “crucial leg in the stool.”

” The Top offer catapults Walgreens through VillageMD into the position as one of the biggest financier owned, multi-payer medical care organization in the United States (UNH at No. 1), anticipating to leave 2023 with more than 700 places and producing $8B in profits. The Top offer most likely sidelines WBA from big scale M&A near term, as the business moves into combination mode for the next 12-18 months,” the experts concluded.