Shares of Walgreens Boots Alliance (WBA) – Get Report jumped Wednesday right after the business declared late Tuesday that it will title departing Starbucks (SBUX) – Get Report executive Rosalind Brewer as its new CEO powerful March 15.
Walgreens Boots shares rose 5.2% premarket on the news right after also growing immediately after several hours Tuesday. Brewer most not long ago served as chief operating officer of Starbucks and ahead of that was CEO of Walmart’s (WMT) – Get Report Sam’s Club division for 5 years. Upon having above the reins at Walgreens, Brewer will turn into the only present-day Black woman CEO in the S&P 500 index, according to Bloomberg.
Analyst corporations were being mostly bullish on the information Wednesday.
Jefferies managed its maintain rating but termed Brewer “an spectacular CEO seek the services of,” in accordance to Bloomberg, owing to her keep track of report in the purchaser sector. Nonetheless the agency also questioned “how the appointment of a CEO with a client history would influence WBA’s strategic path, at a time when a more substantial press into healthcare room seems needed.”
Cowen, which has a industry accomplish rating on the Walgreens, was also good on the use, saying “emphasis on locating a CEO who has led enterprises as a result of durations of sizeable transformation, as regular retail types adapt to a additional electronic earth and modifying shopper conduct.”
Guggenheim, which has a obtain rating, predicted shares would respond positively to the news Wednesday, but that there could also be pushback for investors who were searching for a retain the services of from the healthcare sector.
Brewer will be taking more than from billionaire Stefano Pessina, who has been CEO considering that 2015. Pessina, who owns additional than 16% of Walgreens, will become govt chairman.
Brewer’s digital abilities manufactured her an excellent applicant to oversee the company’s transformation, Pessina informed Bloomberg. That and her management abilities will make up for her lack of encounter in the healthcare sector, he said.
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