Deutsche Bank said Walgreens could benefit from recent business moves if they are done well. Taking a “leap of confidence” following a meeting with management and investors, analyst George Hill upgraded the drugstore chain’s stock to buy from hold. He also raised his price target to $50, implying a 29.9% gain from Thursday’s close. “We left the meeting with growing confidence in the company’s ability to execute on its care strategy, which will lead to positive revisions and expansion of many WBA shares,” Hill said. Hill said the upgrade reflects a “skewed positive” risk-reward profile, showing a potential drop of around 10% to 15% compared to a potential gain of more than 30% if the company is successful. The focus of investors at the meeting was the Summit/Village MD acquisition as the company transitions into healthcare services. Hill said the deal makes Walgreens one of the most investor-owned and multi-payer primary care businesses, although UnitedHealth will still be the largest. Hill said by the end of 2023, Walgreens will have 700 locations and $800 billion in revenue. He also predicts the deal will likely help the company exit large-scale mergers or acquisitions over the next 12 to 18 months as it focuses on bringing in Summit and Village MD. According to Hill. Hill said Summit has a unique business area that could help Walgreens expand its total addressable market. Walgreens could also profit from focusing on New Jersey and New York. Because Walgreens has majority ownership, Hill said it could take Summit public in 2023 through an initial public offering. To be sure, the merger doesn’t address the company’s long-term goal of “simplifying” its business, he said, as investors won’t be able to escape the accounting and reporting complexities. math is already annoying. Meanwhile, Walgreens also shares initiatives to gain pharmaceutical market share by 2024 as it seeks to capitalize on challenges faced by competitors like CVS. The goal could be to get payers like Cigna, United and Humana more interested in Walgreens when it comes to prescription drugs, Hill said. However, he said the pharmaceutical segment faces “continued risks” from the pandemic outbreak after the segment’s relevance increased as Covid vaccines and drugs were launched. – Michael Bloom of CNBC contributed to this report.