Opinions The Panic-Proof Portfolio (Stockchase Research)
Walgreen Boots AllianceWBATOP PICKApr 14, 2022
Stockchase Research Editor: Michael O'Reilly The value inherent in the Boots chain within WBA is attracting interest from the huge Reliance Industries of India and is causing us to reiterate WBA as a TOP PICK. The value of the chain operating 2200 stores in the UK is estimated as high as $9 billion. It currently trades at 6x earnings, compared to peers at 14, and is only 1.4x book value. Recently reported earnings beat expectations by 13% and support a solid ROE of 19%. Cash reserves are growing, while shares are being bought back. It pays a great dividend, that has been growing for 46 consecutive years, supported by a payout ratio under 30% of cash flow. We continue to recommend a stop loss at $40.00, looking to achieve $53.50 - 19% potential upside. Yield 4.32% (Analysts’ price target is $50.31)
$45.17
Stock price when the opinion was issued
$12.05
As of Aug 27, 2025. Market Open.
specialty stores
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specialty stores
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