Walgreens Boots Alliance (WBA: NYSE) faces a potential labor dispute as more than 500 U.S. employees consider a two-day walkout starting today, October 9. Walgreens store staff are concerned about challenging working conditions, including chronic understaffing and patient safety issues. This article will explore how this dispute may affect the WBA stock forecast.
The Looming Walkout:
Walgreens employees, including pharmacists, technicians, and support staff, may collectively participate in a walkout from October 9 to 11. Moreover, they have the dual responsibility of administering vaccines and processing prescriptions.
Adding to the turmoil, newer technicians allege inadequate training. Evidently, these concerns have simmered for a considerable duration, with employees voicing their discontent, yet management appears to be turning a deaf ear.
Management’s Response:
In response to the escalating tensions, the management at WBA issued a statement, asserting, “We are engaged and listening to the concerns raised by some of our team members… making significant investments in pharmacist wages and hiring bonuses to attract/retain talent in harder-to-staff locations.” This acknowledgment, however, may not be sufficient to quell the brewing unrest within the organization.
WBA’s Financial Horizon:
As investors keenly await WBA’s Q4 FY23 earnings, slated for release on October 12, J.P. Morgan analyst Lisa Gill has adjusted her stance on the company. Gill revised the price target for WBA down from $33 to $27 while maintaining a Hold rating. Her rationale for this change stems from a reevaluation of the Fiscal 2024 guidance, influenced by a shifting leadership team at the pharmacy chain.
For the upcoming Q4, analysts anticipate adjusted earnings of $0.69 per share, accompanied by revenues totaling $34.82 billion.
WBA Stock Forecast:
Looking at the WBA stock forecast, the average target price is USD 31.80 for October 2024. WBA stock has a consensus rating of ‘Hold.’ However, Stock Target Advisor’s analysts are ‘Slightly Bullish.’ This evaluation is based on 10 positive signals and 5 negative signals.
Current Performance:
At the most recent closing bell, the stock registered a value of USD 21.81. This price has changed by -1.93% over the past week, -1.04% over the past month, and -28.54% over the last year.
Conclusion:
As Walgreens grapples with the looming labor unrest, the fate of its stock remains a matter of speculation. Investors await Q4 FY23 earnings to gauge WBA’s performance and its response to challenges, impacting market sentiment. In a volatile landscape, WBA stock’s future depends on its ability to navigate challenges and maintain internal harmony.
