Dahlman Rose Starts Walgreen (WAG) at Buy, $50 Price Target
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Price: $50.40 +0.52%
Rating Summary:
14 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
14 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade WAG Now!
Dahlman Rose initiates coverage on shares of Walgreen (NYSE: WAG) with a Buy rating and $50 price target.
The firm notes that WAG one of its top picks in the drug retailers market given the current market and trends.
The company has begun experiencing the benefits of leveraging its prime real estate locations with more meaningful sales and margin improvement, following management refocusing on the inner workings of its retail box.
Organic growth has fallen from 9 percent in 2009 to 2.5-3 percent by the end of its current fiscal year. Dahlman Rose points out that is due to start-up costs and a long maturity cycle. It believes that WAG's store base may experience improved profitability resulting in an additional $0.24 in EPS in 2012.
An analyst at the firm reports, "An improved focus on costs, store remodeling, and adding food could provide greater appeal and leverage WAG's well-located store base. About 73 percent of the stores will be remodeled to the latest format by October 2011 and should help boost an already improved front-end performance."
Dahlman Rose released its Q3 and 2011 EPS estimates at $0.65 and $2.65, while its 2012 estimate is $3.07.
For more ratings news on Walgreen click here and for the rating history of Walgreen click here.
Shares of Walgreen closed at $43.43 yesterday, with a 52 week range of $26.77-$47.11.
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The firm notes that WAG one of its top picks in the drug retailers market given the current market and trends.
The company has begun experiencing the benefits of leveraging its prime real estate locations with more meaningful sales and margin improvement, following management refocusing on the inner workings of its retail box.
Organic growth has fallen from 9 percent in 2009 to 2.5-3 percent by the end of its current fiscal year. Dahlman Rose points out that is due to start-up costs and a long maturity cycle. It believes that WAG's store base may experience improved profitability resulting in an additional $0.24 in EPS in 2012.
An analyst at the firm reports, "An improved focus on costs, store remodeling, and adding food could provide greater appeal and leverage WAG's well-located store base. About 73 percent of the stores will be remodeled to the latest format by October 2011 and should help boost an already improved front-end performance."
Dahlman Rose released its Q3 and 2011 EPS estimates at $0.65 and $2.65, while its 2012 estimate is $3.07.
For more ratings news on Walgreen click here and for the rating history of Walgreen click here.
Shares of Walgreen closed at $43.43 yesterday, with a 52 week range of $26.77-$47.11.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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