Drug store chain operator Walgreen Company (WAG) on Friday caught some tepid commentary from analysts at Jefferies & Co.
The firm maintained its “Hold” rating on WAG and lowered its price target from $34 to $30. That new target suggests very little upside to the stock’s Thursday closing price of $29.04.
A Jefferies analyst commented, “We are updating our Walgreen’s estimates to reflect both 3Q12 earnings results as well as our initial accretion estimate from the Alliance Boots acquisition. We have lowered our core revenue growth rates for both the remainder of 2012 and for 2013 due to lower than expected sales as well as weaker gross margins.”
Walgreen shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of Walgreen Company (WAG) have a 3.79% dividend yield, based on last night’s closing stock price of $29.04. The stock has technical support in the $26-$27 price area. If the shares can firm up, we see overhead resistance around the $32 price level.
Walgreen Company (WAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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