Jefferies Upgrades Walgreen (WAG) to Buy
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Price: $50.11 +0.72%
Rating Summary:
14 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
14 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade WAG Now!
Jefferies upgraded Walgreen (NYSE: WAG) from Hold to Buy with a price target of $47.00 (from $40.00).
The firm comments, "We are upgrading WAG to Buy from Hold as our research continues to suggest that purchasing synergies are materializing faster than expected. In addition, the potential for higher script volumes (Flu/Med D/ObamaCare) could also drive better profitability. With valuation at the low-end of its range and at roughly a 2x P/E discount to CVS, investors could be rewarded with both EPS surprises and multiple expansion over the next 12 months."
The firm trimmed Q2 EPS from $0.69 to $0.58 but raised FY13 EPS from $3.23 to $3.27.
For an analyst ratings summary and ratings history on Walgreen click here. For more ratings news on Walgreen click here.
Shares of Walgreen closed at $37.18 yesterday, with a 52 week range of $28.53-$38.20.
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The firm comments, "We are upgrading WAG to Buy from Hold as our research continues to suggest that purchasing synergies are materializing faster than expected. In addition, the potential for higher script volumes (Flu/Med D/ObamaCare) could also drive better profitability. With valuation at the low-end of its range and at roughly a 2x P/E discount to CVS, investors could be rewarded with both EPS surprises and multiple expansion over the next 12 months."
The firm trimmed Q2 EPS from $0.69 to $0.58 but raised FY13 EPS from $3.23 to $3.27.
For an analyst ratings summary and ratings history on Walgreen click here. For more ratings news on Walgreen click here.
Shares of Walgreen closed at $37.18 yesterday, with a 52 week range of $28.53-$38.20.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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