UPDATE: Citigroup Upgrades Walgreen Company to Buy, Raises PT on ABC Deal

In a report published Wednesday, Citigroup analyst Deborah L. Weinswig upgraded the rating on Walgreen Company

from Sell to Buy, and raised the price target from $32.00 to $51.00. In the report, Weinswig noted, “We are upgrading WAG to Buy from Sell and raising our target price to $51, up from $32 previously. The distribution agreement and potential equity stake in drug distributor AmerisourceBergen (ABC) should result in EPS accretion of $0.09-$0.28 in F2014, and more importantly, demonstrates how WAG is transforming the pharmaceutical supply chain on a global basis. We believe that innovative partnerships like this one and the 45% stake in Alliance Boots position the company well to benefit from the Affordable Care Act taking effect in 2014. Going forward, we expect WAG to continue to develop innovative solutions that drive top and bottom line growth.” Walgreen Company closed on Tuesday at $44.74.