Walgreens Boots Alliance (WBA) shares "have run too far" on speculation surrounding a potential take-private deal with Sycamore Partners, Deutsche Bank said in a Thursday note, citing a Financial Times report.

Citing sources with knowledge of the details, the Financial Times reported Thursday that a buyout of Walgreens would set the stage for a three-way split of the company, with the funding for taking it private not expected to be difficult following weeks of talks with Sycamore.

"The article notes financing is in place (not a surprise to us), but the deal strikes us as incredibly complicated and unlikely to be consummated at a premium to the current share price," Deutsche Bank said.

The bank described the deal as "highly difficult," noting that Walgreens' core US business is "especially challenged."

Deutsche Bank downgraded the company to sell from hold and cut its price target to $9 from $11.

The shares of Walgreens Boots Alliance were down nearly 3% in recent trading.

Price: 10.92, Change: -0.31, Percent Change: -2.76