Drug store chain operator Walgreen Company (WAG) on Thursday received some continued tepid commentary from analysts at Jefferies & Co.

The firm maintained its “Hold” rating on WAG as well as its $30 price target, which suggests a 16% upside to the stock’s Wednesday closing price of $35.88.

A Jefferies analyst commented, “The available pool of returning scripts to WAG got significantly smaller as TRICARE announced that it would not bring WAG back into its network. According to WAG, this business amounted to roughly 18% of script volumes it processed for Express Scripts (Nasdaq: ESRX). This surprise announcement clearly questions how many of the ESRX scripts WAG used to process will actually return and it also appears to be a tacit endorsement for more limited networks.”

Walgreen shares fell $1.73, or -4.8%, in premarket trading Thursday.

The Bottom Line
Shares of Walgreen Company (WAG) have a 3.07% dividend yield, based on last night’s closing stock price of $35.88. The stock has technical support in the $32 price area. If the shares can firm up, we see overhead resistance around the $37-$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.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.