JPMorgan downgrades Walgreens to Neutral ahead of fiscal 2020 outlook
JPMorgan analyst Lisa Gill downgraded Walgreens Boots Alliance to Neutral from Overweight with a price target of $63, down from $73. The analyst, based on her relative rating methodology, sees better opportunities for upside in other companies within her coverage universe at the current time. With Walgreens expected to provide fiscal 2020 guidance with Q4 results on October 28, its adjusted operating profit growth "will continue to remain challenged" in the near term, after a high-single digit decline in fiscal 2019, Gill tells investors in a pre-earnings research note. The analyst says that with growth taking longer to realize under the current strategy and limited clarity on the roadmap to improvement and few identifiable near term catalysts, she finds it difficult to justify on Overweight rating on Walgreens shares.