Walgreen’s Target, Estimates Boosted at UBS (WAG)
Drugstore chain operator Walgreen Company (WAG) on Wednesday caught some positive commentary from analysts at UBS.
The firm maintained its “Buy” rating on WAG and lifted its price target to $39, suggesting a 12% upside to the stock’s Tuesday closing price of $34.80. UBS also raised its earnings estimates for the company, noting it expects a deal with ExpressScripts (ESRX) to happen in April or May. As a result, the analyst believes the risk/reward balance has skewed to the upside for the stock.
Walgreen shares, which have risen 5% year-to-date, were unchanged in premarket trading Wednesday.
The Bottom Line
Shares of Walgreen Company (WAG) have a 2.59% dividend yield, based on last night’s closing stock price of $34.80. The stock has technical support in the $31-$32 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels.
Walgreen Company (WAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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