Walgreens Stock Pops On Fresh Optimism About a Deal

Walgreens Boots Alliance (

WBA

) shares jumped Monday afternoon as investor optimism about the possibility of a deal lifted the drugstore chain’s shares.

Walgreens shares surged close to 7%, leaving the stock about 16% higher this year, though a bit below early 2025 highs. Perceptions that a deal might be on, or off, have lately dragged the shares in both directions. They’ve lost roughly half their value over the past 12 months.

Reports suggesting that a sale to private-equity firm Sycamore Partners
was still in play
boosted the stock last week. On Monday, credit-information provider Octus said on the social media platform X that “Morgan Stanley, UBS, and private lenders are structuring a $10 billion package to back Sycamore Partners’ potential buyout,” suggesting further progress toward a deal.

Deutsche Bank analysts last week maintained a “hold” rating on the shares, saying in a report that the “main obstacles for any potential acquirer remain the company’s constrained cash flow, poor fundamentals and ongoing debt burden.”

The Justice Department, meanwhile, earlier this year
announced a lawsuit
regarding its prescription practices.

UPDATE—Feb. 24, 2025: This article has been updated since it was first published to reflect more recent share price values.

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