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 The NASDAQ OMX Group, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: WAG



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