Cantor Fitzgerald Starts Walgreen (WAG) at Buy; Damage Done, Look Past Transition Year

Cantor Fitzgerald initiates coverage on Walgreen (NYSE: WAG) with a Buy. PT $43.00.

Analyst, Ajay Jain, said, "Although the recent resolution of the Express Scripts (Nasdaq: ESRX) contract dispute removes a major overhang, persistent concerns remain from many investors over ongoing reimbursement pressures and Walgreen's ability to regain ESRX customers in FY:13...We expect 50% recovery of the lost script volume by FY:13. The combination of synergies from Alliance Boots, impact from generics, contribution from the USA Drug acquisition, and the benefits of an aging store fleet should be accretive by close to $0.30 per share in FY:13."

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 $35.71 yesterday.

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