UPDATE: Jefferies Upgrades Walgreen to Buy on Purchasing Synergies

Jefferies raised its rating on Walgreen

from Hold to Buy and increased its price target from $40 to $47. Jefferies said, "We are upgrading WAG to Buy from Hold as our research continues to suggest that purchasing synergies are materializing faster than expected. In addition, the potential for higher script volumes (Flu/Med D/ObamaCare) could also drive better profitability. With valuation at the low-end of its range and at roughly a 2x P/E discount to CVS, investors could be rewarded with both EPS surprises and multiple expansion over the next 12 months." Walgreen closed at $37.18 on Friday.