Walgreens Boots Alliance Inc

Still, we are monitoring near-term operating risks related to the rising number of COVID-19 cases worldwide and weaker cough, cold, and flu season, which is negatively affecting comparable scripts. We expect Walgreens' operating results, while improving, will continue to face material uncertainty over the coming quarters, and anticipate leverage will remain elevated in the nearly 4x range through at least the first half of fiscal-year 2021. Based on recent results, we believe Walgreens is on track to achieve the $2 billion or more annual savings it has outlined under its transformational cost-management program by fiscal 2022. These cost benefits should continue to partly mitigate pharmacy reimbursement pressures and industry challenges. We note Walgreens has a history of pursuing large acquisitions,

...The negative outlook reflects the risk of a resurgence in COVID-19 cases that could prolong Walgreens' operating recovery after a difficult 2020, resulting in credit measures being stretched through 2021. We believe sequential improvement in sales and profitability in the first quarter of fiscal-year 2021 are positive developments. First-quarter revenues for the period ended Nov. 30, 2020, increased 5.7% on higher prescriptions filled and comparable front-end retail sales. Still, we are monitoring near-term operating risks related to the rising number of COVID-19 cases worldwide and weaker cough, cold, and flu season, which is negatively affecting comparable scripts. We expect Walgreens' operating results, while improving, will continue to face material uncertainty over the coming quarters, and anticipate leverage will remain elevated in the nearly 4x range through at least the first half of fiscal-year 2021. Based on recent results, we believe Walgreens is on track to achieve the $2 billion...

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