Raymond James maintained a Market Carry out score on Walgreens Boots Alliance (NASDAQ:) in a word Thursday, with analysts stating that they’re slicing estimates forward of the corporate’s third-quarter earnings report.

Nonetheless, the analysts famous that retail and U.S. well being is unlikely to impression the corporate’s steerage.

“We’re decreasing our F2023 Retail EBIT estimate by $143M to $4.16B as a result of decrease assumed COVID earnings (-$150M vs. prior estimate), and 340B strain (-$100M), whereas including again ~$100M for elevated RE sale-leaseback positive aspects,” defined the analysts.

“Our COVID assumption is now in-line with the CVS retail section, the place the newest steerage assumes COVID earnings decline ~75% y/y, together with a 340B lower of $100M ($200M annualized, or roughly 20% of estimated gross 340B gross revenue).”

The analysts additionally mentioned the agency is slicing its F2023 U.S. Well being EBIT estimate for WBA “by $207M to ($467M) to account for a slower ramp in VillageMD/Summit Well being earnings in F2H23 given the weak F1H23 tendencies and the sluggish Sept. 2022 quarterly Summit/Metropolis EBITDA of solely $17M.”

“We do not see the constructing blocks for the assumed again half ramp, on condition that all the items have been current within the Feb. quarter ex-1 month of Summit/Metropolis,” they concluded.