Barclays Reaffirms Rating on Walgreens (WAG)
Barclays reported on Thursday that they have reiterated their rating for drugstore chain, Walgreen Company(WAG).
Analysts at the firm reported that they have reaffirmed WAG’s current “Neutral” rating and $39 price target. This price target suggests a 14.5% increase over the stock’s current price of $33.32.
The firm noted, “there are no signs yet that WAG is winning back Express Scripts customers, though the company has been offering coupons to some patients to get them to transfer scripts back. We believe it is still early, though, and WAG no longer quantifies the impact of the dispute, so we will never know exactly how much business has returned. On its 3Q12 earnings call on November 6, CVS increased its likely retention of ESRX customers who had shopped at WAG to 60% from 50% prior, with some of the difference being the retention of members of the Department of Defense plan, Tricare; Tricare is not putting WAG back into its pharmacy network.”
Walgreens shares were mostly flat during premarket trading Thursday. The stock is up 0.97% YTD.
The Bottom Line
Shares of Walgreen Company (WAG) have a 3.30% dividend yield, based on last night’s closing stock price of $33.32. The stock has technical support in the $29-$31 price area. If the shares can firm up, we see overhead resistance around the $35-$37 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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