UPDATE: Citigroup Initiates Coverage On Walgreens On Positive 2016 Outlook

In a report published Wednesday, Citigroup analyst Alvin C. Concepcion initiated coverage on

with a Buy rating and $80.00 price target. In the report, Citigroup noted, “We're initiating coverage of WAG with a Buy rating and $80 target price. Despite likely investor skepticism due to recent misses and the downward revision to the fiscal 2016 target in August, we believe the company's 2016 targets are achievable and possibly conservative. Given low investor expectations, if the company is able to merely achieve our $3.40 fiscal 2015 EPS estimate, we think this could increase investor confidence in the company's ability to achieve its fiscal 2016 targets. We think further stock upside remains as the growth prospects do not appear to be fully appreciated in the share price.” Walgreens closed on Tuesday at $68.59.