Barclays Maintains an 'Underweight' on Walgreen (WAG); 4Q11 Earnings Preview

Barclays maintains an 'Underweight' on Walgreen (NYSE: WAG) price target of $29.00.

Barclays analyst says, "We are maintaining our 4Q11 EPS forecast of $0.56, which is $0.01 above consensus. WAG has already reported total 4Q sales of $17.94B, up 6.4% based on total comps of 4.3%, pharmacy comps of 4.2% and front-end comps of 4.7%...We are also maintaining our FY11 and FY12 EPS estimates of $2.63 and $2.74, respectively. Our FY12 estimate assumes the current dispute with Express Scripts (Nasdaq: ESRX) is not resolved, which has a material negative impact beginning January 1, 2012."

"We continue to believe that WAG's stock price does not fully reflect the possibility that WAG's dispute with ESRX will not be resolved. Time will be the ultimate deciding factor, but events since our downgrade to UW on 8/23/11 have only confirmed our doubts."

WAG reports Q4 EPS on Tuesday, Sept 27 before the open.

For more ratings news on Walgreen click here and for the rating history of Walgreen click here.

Shares of Walgreen closed at $37.09 yesterday.

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Morgan Stanley course-corrects their semiconductor equipment outlook on demand
• BMO starts chip stocks coverage: Here are its preferred picks