WBA - Walgreens Boots Alliance: Simply Changing CEOs Won't Likely Solve The Company's Problems

2024-05-07 12:18:15 ET

Summary

• The new management team has no viable plan to reverse the multiple secular challenges facing Walgreen Boots Alliance.
• WBA does not have the leverage to negotiate drug prices.
• The overall operating environment for retail pharmacies such as WBA will likely continue to deteriorate, and the macro economy shows signs of slowing as well.

There are nearly few ideas more tempting than investing in well-known companies or iconic brands that appear to be trading at a significant discount. Finding value is hard, and when previously strong-performing corporations sell off hard, often investors will try to find a way to convince themselves that the stock is undervaluing the brand of the company....

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