Leerink Partners Reiterates a Hold Rating on Walgreens Boots Alliance (WBA)

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of the 13 Cheap Mid-Cap Stocks to Add to Your PortfolioOn April 10, analyst Michael Cherny of Leerink Partners reiterated a Hold rating on Walgreens Boots Alliance, Inc. (NASDAQ:WBA), retaining the price target of $11.50. The analyst based the rating on the company’s strategic developments and recent performance.

He stated that the company’s pharmacy segment underwent significant growth with a rise in comparable prescriptions, especially in the back of the store. However, the store’s front experienced challenges, including a fall in the sale of discretionary items. This affected overall retail sales.

Jim Cramer on Walgreens Boots Alliance (WBA): “Going Private – Consider It Done!”

A pharmacist discussing the health benefits of a prescription medication with a customer.

The analyst also reasoned that while Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is showing positive momentum in its international operations, they were offset by a rise in investments in technology and payroll. The US Healthcare segment, however, exhibited improved profitability, which Cherny attributed to contributions from Shields and VillageMD.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) also announced a definitive agreement to be acquired by Sycamore Partners in March in a transaction valued at up to $23.7 billion.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is an American multinational company providing retail, pharmacy, and healthcare services. The company has approximately 12,500 locations across the US, Europe, and Latin America. Its brand portfolio includes well-known brands such as Walgreens, Boots, Duane Reade, and Benavides.

While we acknowledge the potential of WBA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.