Wells Fargo sees increased likelihood of Walgreens cutting FY19 outlook

Wells Fargo analyst Peter Costa reduced his estimates for Walgreens Boots Alliance to reflect greater headwinds from reimbursement pressure, less deflation of generics, a weaker flu season, and potentially slowed tobacco-related sales. It seems increasingly likely that the company may lower its fiscal 2019 outlook, Costa tells investors in a research note. He points out that at a recent competitor conference, management did not provide an update to its earnings outlook, but highlighted reimbursement pressure as a bigger headwind as well as less deflation of generics. Costa dropped his price target for Walgreens Boots Alliance to $75 from $82 but keeps an Outperform rating on the name.
https://thefly.com/landingPageNews.php?id=2879881