Walgreen Now Rated a “Buy” at Jefferies & Co. (WAG)

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Drug store chain operator Walgreen Company ( WAG ) 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 of $33.11.

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 Tuesday.

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 ( WAG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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