Barrington Research Downgrades Walgreen (WAG) to Market Perform; Uncertainty Surrounding Express Scripts Contract
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Rating Summary:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barrington Research downgraded Walgreen (NYSE: WAG) from Outperform to Market Perform.
Barrington analyst said, "This morning, before the market’s open, Walgreen Co. reported fiscal third results that beat the consensus but came in a shade below our optimistic EPS estimate. We believe that even though EPS came in ahead of the Street expectations, it may have been a case of good but not good enough."
"We continue to anticipate improvement in operating margin throughout 2011 but are lowering our 2012 estimates to account for the potential impact of losing the Express Scripts pharmacy business. We are lowering our 2012 revenue and EPS estimates to $72.53 billion and $2.90 from $75.90 and $3.00, respectively. We are also scaling back our investment rating to MARKET PERFORM pending resolution of this matter."
For more ratings news on Walgreen click here and for the rating history of Walgreen click here.
Shares of Walgreen closed at $45.18 yesterday.
Barrington analyst said, "This morning, before the market’s open, Walgreen Co. reported fiscal third results that beat the consensus but came in a shade below our optimistic EPS estimate. We believe that even though EPS came in ahead of the Street expectations, it may have been a case of good but not good enough."
"We continue to anticipate improvement in operating margin throughout 2011 but are lowering our 2012 estimates to account for the potential impact of losing the Express Scripts pharmacy business. We are lowering our 2012 revenue and EPS estimates to $72.53 billion and $2.90 from $75.90 and $3.00, respectively. We are also scaling back our investment rating to MARKET PERFORM pending resolution of this matter."
For more ratings news on Walgreen click here and for the rating history of Walgreen click here.
Shares of Walgreen closed at $45.18 yesterday.
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