Wall Street’s ratings on WBA
27 analysts track Walgreens Boots Alliance (WBA). The company is rated a 2.3 on a scale where one is a “strong buy” and five is a “strong sell.” It was rated a 2.0 at the end of June 2017. The stock saw the following rating downgrades in 2017:
- Leerink Swann downgraded it from “outperform” to “market perform”
- Morgan Stanley downgraded it from “overweight” to “equal weight”
- Raymond James downgraded it from “outperform” to “market perform”
In comparison, CVS Health has a slightly better rating of 2.0, while Rite Aid (RAD) has a rating of 3.0.
Discussing analyst recommendations
Around 52% of analysts covering Walgreens are recommending a “buy” for the stock. Evercore ISI, Wells Fargo, and Needham are among the firms that have rated it a “buy.” The remaining 48% of analysts suggest holding Walgreens stock. There aren’t any “sell” recommendations on the company. Barclays, Deutsche Bank, and Morgan Stanley have given “hold” recommendations on WBA.
In comparison, CVS Health has 70% “buy” and 30% “hold” recommendations. Loop Capital and Wolfe Research are among the investment firms that have set a hold recommendation on CVS, while Raymond James, Morgan Stanley, and Deutsche Bank have a buy recommendation on the company. Morgan Stanley upgraded the stock from “equal weight” to “overweight,” and Raymond James upgraded the stock from “outperform” to “strong buy” at the beginning of this year.
Investors looking for exposure to Walgreens and CVS can consider the VanEck Retail ETF (RTH), which invests ~8% of its portfolio in the two companies.