UPDATE: Morgan Stanley Upgrades Walgreen to Equal-weight; Express Overhang Removed

Morgan Stanley raised its rating on Walgreen

from Overweight to Equalweight and removes its previous price target of $31. Morgan Stanley noted, "The Express Scripts dispute is over, but focus now turns to growth prospects for Alliance Boots and related Europe risk. We still see an unsettled US EPS backdrop (couponing to win back Express customers, weak front-end and new Express-Medco contract margins)." Walgreen closed at $35.52 on Thursday.