Barclays Maintains an 'Underweight' on Walgreen (WAG); September Sales Preview
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Price: $76.05 --0%
Rating Summary:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Underweight' on Walgreen (NYSE: WAG) price target of $29.00.
Barclays analyst says, "Our total comp estimate for September is 4.3%, with front-end (FE) comps of 5.0% and pharmacy comps of 4.0%. WAG's comps have been strong of late, driven at least in part by the benefits of the rollout of the Consumer Centric Retailing (CCR) store investments...We are forecasting total sales of $5.99B for September, an increase of 6.3%, and 1Q12 EPS of $0.67 versus consensus of $0.68."
"At the same time, we think that the dispute with Express Scripts (Nasdaq: ESRX) is starting to hurt results, as some customers change pharmacies after getting letters from their employer or health plan saying WAG will no longer be in the ESRX network effective January 1. We expect this pressure to continue for the next six months or so if the dispute is not resolved, and even if it is, WAG may well have caused lasting damage to its customer relationships. Consequently, the reaction of the stock to the monthly comp release will likely be somewhat muted given the overhang of this still unresolved dispute."
For more ratings news on Walgreen click here and for the rating history of Walgreen click here.
Shares of Walgreen closed at $32.47 yesterday.
Barclays analyst says, "Our total comp estimate for September is 4.3%, with front-end (FE) comps of 5.0% and pharmacy comps of 4.0%. WAG's comps have been strong of late, driven at least in part by the benefits of the rollout of the Consumer Centric Retailing (CCR) store investments...We are forecasting total sales of $5.99B for September, an increase of 6.3%, and 1Q12 EPS of $0.67 versus consensus of $0.68."
"At the same time, we think that the dispute with Express Scripts (Nasdaq: ESRX) is starting to hurt results, as some customers change pharmacies after getting letters from their employer or health plan saying WAG will no longer be in the ESRX network effective January 1. We expect this pressure to continue for the next six months or so if the dispute is not resolved, and even if it is, WAG may well have caused lasting damage to its customer relationships. Consequently, the reaction of the stock to the monthly comp release will likely be somewhat muted given the overhang of this still unresolved dispute."
For more ratings news on Walgreen click here and for the rating history of Walgreen click here.
Shares of Walgreen closed at $32.47 yesterday.
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