Walgreens Boots Alliance (NASDAQ:WBA) Navigates Neutral Rating Amidst Financial and Legal Headwinds

Publication Date: June 26, 2025

Walgreens Boots Alliance, Inc. (NASDAQ:WBA), a prominent global leader in retail and wholesale pharmacy, is facing a period of scrutiny as it navigates a neutral analyst rating, mixed financial projections, and the lingering impact of a significant legal settlement. The company, which operates across more than 25 countries and offers a broad spectrum of health and wellness products, competes intensely with major pharmacy chains such as CVS Health and Rite Aid.

UBS Maintains Neutral Stance on WBA

On June 26, 2025, UBS updated its rating for WBA to "Neutral," maintaining a "hold" action on the stock. This decision comes as WBA's stock was priced at $11.31, as reported by Benzinga. The neutral outlook from UBS suggests a cautious approach, likely influenced by a combination of the company's upcoming earnings report and recent legal challenges.

Mixed Financial Outlook for Q3

Walgreens is poised to release its third-quarter earnings, with analysts anticipating earnings per share (EPS) of 34 cents. This projection represents a notable decrease from the 63 cents per share reported in the same quarter last year. Despite the expected decline in profitability, revenue is projected to see a slight increase, rising to $36.72 billion from $36.35 billion in the prior year. This mixed financial picture – declining earnings alongside modest revenue growth – appears to be a key factor underpinning UBS's decision to maintain its Neutral rating.

Legal Settlement Weighs on Investor Sentiment

A significant legal development has also cast a shadow over WBA's recent performance. The company agreed to pay $300 million to settle federal allegations concerning invalid prescriptions for opioids and other controlled substances. This substantial settlement has likely impacted investor sentiment, contributing to a 0.4% decline in the stock price, which closed at $11.31 on the day of the report.

Stock Performance and Market Overview

Today's trading saw WBA's stock experience a slight decrease of 0.35%, representing a change of $0.04. The stock traded within a narrow range of $11.31 to $11.36, indicating some intraday volatility. Over the past year, WBA's stock has demonstrated a high of $13.25 and a low of $8.08, reflecting broader market fluctuations and company-specific challenges. The company currently holds a market capitalization of approximately $9.79 billion.

Investors seeking deeper insights into analyst perspectives can utilize resources like Benzinga, which provides access to the latest analyst ratings. This allows for comprehensive analysis by sorting data based on stock ticker, company name, analyst firm, and other relevant variables, offering valuable context for Walgreens' market position and future prospects.