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Jefferies Cuts Target, Estimates for Walgreen on Lack of ESRX Deal (WAG, ESRX)

Drug store chain operator Walgreen Company ( WAG ) on Friday caught some negative commentary from analysts at Jefferies & Co.

The firm said it lowered its price target on WAG to $34, suggesting zero upside to the stock's Thursday closing price of $33.92. Jefferies also maintained its "Hold" rating but lowered its earnings estimates for the company, citing continued uncertainty surrounding WAG's lack of contract with prescription benefits provider Express Scripts ( ESRX ).

Walgreen shares, which have fallen 13% year-to-date, were mostly flat in premarket trading Friday.

The Bottom Line

Shares of Walgreen Company ( WAG ) have a 2.65% dividend yield, based on last night's closing stock price of $33.50. The stock has technical support in the $27-$30 price area. If the shares can firm up, we see overhead resistance around the $35-$36 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 .

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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