Mizuho Securities analyst Ann Hynes has maintained their neutral stance on WBA stock, giving a Hold rating on March 5.
Ann Hynes has given her Hold rating due to a combination of factors surrounding Walgreens Boots Alliance’s current strategic moves and market conditions. The company has announced an agreement to be acquired by Sycamore Partners, which involves a cash consideration and potential future monetization of its VillageMD assets. This acquisition is expected to close in the fourth quarter of 2025, with a purchase multiple that aligns with historical trading multiples for the retail pharmacy sector.
Despite the premium offered over recent stock prices, Ann Hynes believes that the going-private transaction is the best course for Walgreens given its ongoing financial and operational challenges. The divestment of VillageMD assets, which have been underperforming, is seen as a necessary step to stabilize the company. However, the uncertainty surrounding the final proceeds from these asset sales and the company’s ability to manage its debt obligations underpins the Hold rating, suggesting investors should maintain their positions while awaiting further developments.
In another report released on March 5, RBC Capital also maintained a Hold rating on the stock with a $12.00 price target.
WBA’s price has also changed moderately for the past six months – from $8.770 to $10.600, which is a 20.87% increase.