Walgreen Boots Alliance (WBA -3.7%) slumps after taking on a biting downgrade from Goldman Sachs.
«We downgrade WBA to Sell as challenges in its retail pharmacy business have intensified, forcing the company to search for other avenues of growth,» writes the Goldman analyst team.
The firm also warns on «peak» retail pharmacy pricing and doesn’t see a path for EBIT to improve.
Walgreens is also seen as limited in shifting its focus. «We think WBA’s balance sheet could be a limiting factor in making a more meaningful strategic pivot,» warns GS.
Walgreens was rated by GS at Neutral before today’s cut.
