Walgreens Stock Has ‘Run Too Far’ on Deal Optimism, Analysts Say | Global News Avenue

Talk about sales has supported stocks The nearest Walgreens. A research team was frustrated by a deal.

Deutsche Bank analysts wrote in a note Friday that, as outlined in the recent Financial Times story, would be “very complex” and unlikely to value stocks at current prices. The team recommends selling Walgreens Boots Alliance (WBA) stock and reduce its target to $9. The stock has recently fallen by about 5% to below $11.

“Stocks are too far away in terms of trading speculation. We’ve seen this in the healthcare space where trading reports push the stock price beyond what sponsors are willing to pay,” the note said.

Analysts say Walgreens stock is selling for around $9 to $9.50 until December, when the Financial Times reported that the company was exploring a sale to private equity firm Sycamore Partners. Stocks climbed, selling for about $13 in mid-January.

The deal could pave the way for turning each of Walgreens’ major business units into its own, including: the U.S. pharmacy chain, Walgreens; the UK Business Boot; the Financial Times reported this week that Shields Health Solutions’ specialty pharmaceutical division.

Deutsche analysts say the company’s U.S. business of the same name will be “specially challenging”. They say the fundamentals of retail pharmacies have eroded, and the U.S. division may bear the brunt of potential tax liability and any fines imposed in opioid investigations.

Walgreens Announced in October It plans to close about 1,200 stores as part of its turnaround plan. It recorded a net loss of $256 million Its latest quarterly earnings, However, a $440 million profit was generated after adjusting for store closures and investment value changes.

Deutsche estimates that Walgreens’ stock’s sales value is about $9, meaning Sycamore may be paying less than the stock currently traded or walked away.