Street View: Walgreens looks to manage costs in long-term with store closures
Corrects to drop reference to Walgreens closing 700 stores in the U.S. in the first bullet as the number was already previously reported
** Walgreens Boots Alliance WBA.O said on Thursday it plans to close underperforming stores in the United States and cut its profit forecast for fiscal 2024 as weak consumer spending hurt its retail operations
** Walgreens shares down 0.7% at $12.10 premarket
CONTINUED PRESSURE IN RETAIL PHARMACY
** J.P. Morgan ("overweight") says WBA has illustrated the headwinds faced by pharmacy business from challenges in branded profitability, generic conversions, NADAC and Rx growth
** Evercore ISI("In Line", PT: $10) does not see much financial benefit from store closures until 2H25
** Mizuho ("neutral" PT: $15) says WBA's International and U.S. Healthcare segments continue to show improved performance, which should help offset pharmacy pressure going forward
** TD Cowen ("buy" PT: $35) says market may be underappreciating WBA's strategic initiatives which can promote a significantly more stable business within a couple of years
Reporting by Christy Santhosh
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