03:02 PM EDT, 06/24/2024 (MT Newswires) -- Walgreens Boots Alliance's ( WBA ) fiscal Q3 will be soft, but that is well-baked into its stock and is not expected to create any ripples, UBS Securities said in a note emailed Monday.

The company's share price could be subject to more fluctuations due to asset sales, shift in CVS Health's (CVS) pharmacy reimbursement model, file buys resulting from Rite Aid bankruptcy reorganization and drug cost reductions, compared to financial performance.

Potential asset sales of Boots, Shields, and iA are under consideration and these deals will unlock shareholder value without significantly altering the business's core proposition, the firm added.

UBS said that CVS's planned shift in pharmacy reimbursement for next year presents an opportunity for Walgreens to introduce its pharmacy model or expand its presence in pharmacy benefit manager networks.

Rite Aid's ongoing bankruptcy reorganization and store closures may benefit Walgreens, while file buys could efficiently boost core script growth, the firm said.

UBS said Walgreens aims to lower drug costs amidst national average drug acquisition cost volatility and actions to reduce risk may impact fiscal 2025 and sentiment.

The brokerage reduced price target for Walgreens to $17 from $22 and reiterated its neutral rating.

Price: 15.85, Change: -0.09, Percent Change: -0.60