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Analysts Getting Less Bullish on Drugstore Names (CVS, WAG)

Drug store operators CVS Caremark Corporation ( CVS ) and Walgreen Company ( WAG ) on Tuesday caught a bit of bearish sentiment from some major analysts.

Citigroup maintained its "Buy" rating on CVS but cut its price target from $46 to $41. That new target suggests a smaller 27% upside to the stock's Monday closing price of $32.21.

The firm also lowered its price target for WAG from $48 to $42 and maintained its "Hold" rating. That new target suggests a 20% upside to Walgreen's Monday closing price of $34.90.

Meanwhile, analysts at Barclays downgraded WAG from "Equalweight" to "Underweight" and slashed their price target from $39 to $29, suggesting a 17% downside.

CVS and WAG shares were both mostly flat in premarket trading Tuesday.

The Bottom Line

Shares of CVS Caremark ( CVS ) have a 1.55% dividend yield, based on last night's closing stock price of $32.21. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels. Shares of Walgreen Company ( WAG ) have a 2.58% dividend yield, based on last night's closing stock price of $34.90. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $37-$39 price levels.

CVS Caremark Corporation ( CVS ) and Walgreen Company ( WAG ) are both rated "Neutral" at this time.

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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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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