UPDATE: Morgan Stanley Reiterates on Walgreen Company on Updated Forecasts Following 1QFY14 Results

In a report published Monday, Morgan Stanley analyst Ricky R. Goldwasser reiterated an Overweight rating on

, but removed the $70.00 price target. In the report, Morgan Stanley noted, “We are updating our WAG forecasts post 1QFY14 results, lowering our estimate to reflect a more muted gross margin trajectory than we previously modeled. However, key to the story and to our investment thesis, remains longer term realization of $1 billion in synergy and completion of Step 2 of the AB deal, which remains intact.” Walgreen Company closed on Friday at $59.04.