A Sell Rating for Walgreen Co (WAG)

Citi Investment and Research Analysis (NYSE: C) gave a sell rating for the Chicago based Walgreen Co (NYSE: WAG).

Analysts at Citi have set a price target of $31 for Walgreen Co, based on forward price-to-earnings (P/E) and discounted cash flow (DCF) analyses. Analysts have applied a target multiple of 13x to the 2010 EPS estimate. The negative outlook is based on the slowing square footage growth, weakening of the company’s expense discipline and the competitive challenges that will likely lead to further top-line headwinds, fixed expenses de-leveraging and to lower earnings growth according to analysts.