Drug store chain operator Walgreen Company (
) on Tuesday saw its rating and price target boosted by analysts at
Jefferies & Co.
The firm upgraded WAG to "Buy" from "Hold" and raised its price
target to $45 all the way up from $29. That new target represents a
massive expected upside of 36% to the stock's Monday closing price
A Jefferies analyst commented, "Improving CCR execution, the
potential for a better overall flu season, more cost discipline and
a coming generic wave should propel earnings growth over the next
18 months. Couple these factors with strong FCF and a reasonable
valuation, and we believe investors will be nicely rewarded for
owning Walgreens' equity."
Walgreen shares rose 85 cents, or +2.6%, in premarket trading
The Bottom Line
We removed shares of WAG from our "recommended" list back on
Nov.17, when the stock was trading at $39.40. The company has a
dividend yield of 2.11%, based on last night's closing stock price
of $33.11. The stock has technical support in the $28-$30 price
area. If the shares can firm up, we see overhead resistance around
the $36 price level. We would remain on the sidelines for now.
Walgreen Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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