On Thursday, Evercore ISI adjusted its financial outlook for Walgreens Boots Alliance (NASDAQ:WBA) shares, reducing the price target to $7.50 from the previous $10.00 while maintaining an In Line rating for the stock. The adjustment comes as the firm anticipates the company's fourth-quarter earnings report.
The firm's decision to lower the price target is based on recent discussions with Walgreens' management and reflects an updated view on the company's prospects. The management team provided insights into the key questions and expectations that investors have for the fiscal year 2025 and beyond.
In light of the information shared by Walgreens' management, Evercore ISI has revised its estimates for the fourth quarter. The firm has increased its earnings per share estimate to 35 cents, citing better-than-expected National Average Drug Acquisition Cost (NADAC) data as the reason for the adjustment.
According to the analyst's note, the new price target of $7.50 is based on a valuation of 7 times the projected calendar year 2025 EBITDA. This metric gauges a company's overall financial performance and is often considered by investors when assessing a stock's value.
Walgreens Boots Alliance is scheduled to report its fourth-quarter earnings soon, and the updated price target and earnings estimate by Evercore ISI reflect the firm's latest expectations for the company's financial performance.
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