"The company remains optimistic about its decision to purchase British pharmacy Alliance Boots, though we're not really big fans of the deal. We think it's distracting that Walgreen is focused on acquiring more growth instead of shoring up its core business, which is far from firing on all cylinders. Management continues to tout cost savings and synergies as a result of the deal, but they seem to be missing the big picture. The firm has taken on a substantial amount of debt to pay its dividend and acquire the stake in Alliance Boots, while profitability is clearly declining. The firm laid out targets for fiscal year 2016 that include $130 billion in revenue and operating cash flow of $8 billion. The cash flow forecast seems unrealistic, in our view, as the firm will likely need to sacrifice profitability to reacquire angry Express Scripts consumers.