Barclays Maintains an 'Underweight' on Walgreen (WAG); November Sales Preview

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

Barclays analyst says, "We are lowering our total comp estimate for the month of November to 1.9% from our previous forecast of 3.8%. Our more pessimistic view is a result of a weak start to the flu season, soft trends for the prior two months, and the indication that the dispute with Express Scripts (ESRX) is already impacting sales. We are lowering our front-end comps to 3.0% from 4.5% and our calendar-adjusted pharmacy comps to 2.0% from 3.5%; we are also including a negative 70 bp impact from a calendar shift
which was not in our prior estimate. WAG's comps had been running strong and above expectations for several months, but both September and October came in well below our estimates and consensus."

Barclays lowers FY11 EPS estimate from $2.68 to $2.65 and FY12 from $2.74 to $2.71.

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 $33.88 yesterday.

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