12:55 PM EST, 01/15/2025 (MT Newswires) -- Walgreens Boots Alliance ( WBA ) is showing progress in its turnaround with a solid Q1 results, RBC Capital Markets said in a note Tuesday.

"We are pleased to see WBA shares up significantly following solid F1Q25 results and VillageMD sales commentary" analysts Ben Hendrix and Michael Murray said.

"While pharmacy reimbursement is a multi-year challenge, we are encouraged by turnaround progress to-date, especially the reiteration of 500 store closures this year," they added.

RBC raised its fiscal 2025 adjusted EPS estimate to $1.64 from $1.52 following the strong Q1 results, partially offset by expectations for weaker retail sales due to the soft cough, cold, and flu season, the report said.

To reflect the company's turnaround progress, RBC raised its price target to $12 from $9 while keeping its sector perform rating.

Price: 12.44, Change: +0.20, Percent Change: +1.59