Walgreen Boots Alliance (NASDAQ: WBA) is trading higher premarket Friday after the stock was upgraded by Deutsche Bank.
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Walgreen shares are up over 2% in the premarket session, adding to Thursday's 4% rise. However, in 2022 the company's shares are down 26%.
Deutsche Bank analyst George Hill raised the firm's rating on Walgreen Boots to Buy from Hold, with its price target boosted to $50 per share from $41.
Hill told investors in a research memo that after meeting with the company's management, he came away with increased faith in Walgreens' ability to execute its care delivery strategy, which he feels should lead to positive revisions and multiple expansion for Walgreens shares.
He added that the Summit Health deal launches Walgreens, through VillageMD, into one of the largest investor-owned, multi-payer primary care businesses in the US.
This week it was announced that VillageMD, which is backed by Walgreens Boots, is acquiring urgent care provider Summit Health in a deal worth $9 billion.
Elsewhere, Truist analyst David MacDonald lifted the target on Walgreens Boots Alliance to $44 from $38, keeping a Hold rating on the shares. The analyst cited VillageMD's Summit Health deal. MacDonald said in a research memo that he sees benefits of the agreement to the company on several fronts.
Overall, out of nine analysts, the average price target for Walgreen Boots is $38.38 per share, according to TipRanks.
