Drug store chain operator Walgreen Company (WAG) on Wednesday caught some negative commentary from two major Wall Street analysts.
Argus Research downgraded WAG from “Buy” to “Hold,” noting the company’s recent Alliance Boots investment complicates its business model.
Meanwhile, Credit Suisse lowered its earnings estimates for WAG through 2014, citing expectations for slower growth in the United States. The firm maintained its “Neutral” rating but cut its price target to $28, suggesting a 7% downside to the stock’s Tuesday closing price of $30.09.
These analyst moves follow WAG’s $6.7 billion stake in European pharmacy chain Alliance Boots.
Walgreen shares fell 43 cents, or -1.4%, in premarket trading Wednesday.
The Bottom Line
Shares of Walgreen Company (WAG) will now have a 3.66% dividend yield, based on last night’s closing stock price of $30.09. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $32-$34 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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