– Wallgreens Boots Alliance – trades near all-time lows on virtually every metric.
– Fundamentals are expected to inflect in the second half of FY23.
– Company’s YOY EPS trajectory is projected to flip from about -31% in the first half, to 29% in the back-half.
– This will be driven by lower COVID headwinds, improvements in WBA’s Healthcare business, the timing of reimbursements, and lower COGS.
– The company has been transitioning under its new CEO into a multi-channel technology-driven healthcare provider and a one-stop shop for all healthcare needs.
– This is expected to drive longer-term EPS growth in the 13-15% range.
– Another catalyst is the potential sale of its large UK subsidiary Boots – rumors have been circulating that it might get sold at the right price.
– Trades at an 8.1x PE for 2023 and 7.3x for 2024.
– At historical discount levels (5-10%) would b $70 stock.
Exp. gain: +100%
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