Walgreens Stock Stumbles Amid Legal Challenges, Throwing Cold Water on Hopes for a Rebound | Global News Avenue

After a tough year for Walgreens (world boxing association) investors in the company in 2024 first quarter results top expect.

However, even before the Justice Department filed a new lawsuit causing a sharp drop in stock prices Analysts remained uncertain about the stock on Tuesday.

Four of the eight analysts tracked by Visible Alpha who cover Walgreens posted “Hold” rating For the stock, three have rated it a “sell” and only one has rated it a “buy”, with the average price target Walgreens shares fell 9% to $11.37, after closing at $10.81 on Tuesday.

Analysts at Jefferies and Deutsche Bank maintained their “hold” ratings earlier this month and expressed caution after the company’s better-than-expected results. Analysts at Jefferies said that while the results were encouraging, they “don’t think all is ‘unlocked’ yet,” adding that they “would like to see more” before forecasting a bigger upturn. Positive data points”.

Analysts warned that despite the company’s moves such as Closing hundreds of “underperforming” storesthe company’s retail pharmacy business is likely to “continue to face challenges.”

The new DOJ lawsuit adds a layer of regulatory risk to Walgreens’ already challenging retail environment, with the company’s CEO acknowledging during an earnings call earlier this month that some strategies, such as locking in products, have not been up to par. expected effect.