J.P. Morgan Reiterates Neutral RAting, $41 PT on Walgreen Company

In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating and $41.00 price target on Walgreen Company

. J.P. Morgan noted, “This morning WAG reported fiscal 1Q13 results. Adjusted EPS was $0.58, although adding back a $0.10 EPS swing related to a change in accounting for Alliance Boots equity income (moving from a 1-month reporting lag to a 1-quarter lag), adjusted EPS would have been $0.68. This compares to our $0.73 estimate and Bloomberg consensus of $0.70. We maintain our Neutral rating on the WAG shares. While the ESRX agreement removed an overhang and comps will get easier in CY13, we remain cautious based on the risks around script recapture, reimbursement pressure (especially as the generics tailwind lessens over the next several quarters) and macro risk in Europe potentially impacting Alliance Boots.” Walgreen Company closed on Friday at $37.55.