UPDATE: Goldman Sachs Downgrades Walgreen Company to Buy, Raises PT on Moderate Upside, ABC Deal

In a report published Wednesday, Goldman Sachs analyst Matthew J. Fassler downgraded the rating on Walgreen Company (NYSE: WAG) from Conviction List Buy to Buy, but raised the price target from $46.00 to $50.00.In the report, Fassler noted, “We remove WAG from the Conviction List as we now see moderate (12%) upside to our new $50, 12-month price target, and believe that after WAG's innovative deal with ABC, the market now increasingly appreciates that WAG's association with Alliance-Boots would yield improved strategic corporate direction. We maintain a Buy rating given accelerating earnings momentum and the potential for the ABC distribution deal to drive synergies beyond our current forecast. Since adding WAG to the Conviction List on 9/25/2012, the stock is + 24.0%, vs. the S&P 500 +7.4%. Over the past 12 months, the stock is + 31.4% vs. the S&P 500 +9.8%.”Walgreen Company closed on Tuesday at $44.74.