We are reducing our FY24E-FY26E adjusted EPS and lowering our price target to $15 from $19 on WBA following FQ3:24 earnings. The key takeaway from today's call was that, as a result of the macroeconomic backdrop, the retail pharmacy environment remains challenged, and to a worse degree than WBA initially expected. The company announced a strategic review that includes a retail pharmacy action plan, as well as initiatives to simplify its VillageMD footprint. On the positive, the International and U.S. Healthcare segments continue to show improved performance, which should help offset pharmacy pressure going forward. Despite this, we believe a full turnaround and recovery in the core U.S. segment is likely a post-FY25 story. We remain Neutral. For more of our thoughts on the quarter, please see our flash.