Walgreens Boots Alliance Surpasses Analyst Target Price: What’s Next?

In recent trading, shares of Walgreens Boots Alliance Inc (Symbol: WBA) rose above the average analyst 12-month target price of $11.15, currently trading at $11.16 per share. When a stock reaches an analyst’s target, they typically have two options: either downgrade it based on valuation or adjust the target price higher. Analysts’ reactions may also be influenced by recent business developments that could justify the increase in stock price. If conditions for the company are improving, it might be appropriate to raise the target price.

The average target price for Walgreens Boots Alliance Inc is based on contributions from 13 analysts within the Zacks coverage universe. However, this average masks a range of perspectives; one analyst has set a lower price target of $8.00, while another projects a price as high as $15.00. The standard deviation among these targets is $1.906.

Assessing the average WBA price target helps capture a “wisdom of crowds” approach, reflecting the insights of various analysts rather than just one individual’s perspective. With WBA crossing above the average target price of $11.15, it signals a good opportunity for investors to evaluate the company further. They must decide whether $11.15 represents a stepping stone to an even higher price point or if it indicates that the valuation has become too stretched, prompting a consideration of profit-taking. Below is a table summarizing the current analyst ratings for Walgreens Boots Alliance Inc:

The average rating in the table above ranges from 1 (Strong Buy) to 5 (Strong Sell). This article utilized data provided by Zacks Investment Research via Quandl.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.