Walgreen's Shares Moving Up Following Barclays Upgrade
In a note released Wednesday, Barclays analyst Meredith Alder upgraded shares of Walgreen Co. (NYSE: WAG) from Equal-weight to Overweight and increased her price target form $56 to $92.
The $36 increase to the price target represents 26 percent upside to the closing price on June 16.
The upgrade comes amid criticisms from vocal shareholders, which Alder believes the board is beginning to consider. Alder noted the board is now looking at potential changes, including reducing expenses and optimizing the capital structure, that could "materially boost" earnings and share price.
In a forward outlook, Alder is forecasting an EPS in fiscal 2016 of $5.51, which is 11 percent above consensus estimates.
Following the release of this note, Walgreen's shares have traded up approximately three percent to ~$75.25.
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