UPDATE: JP Morgan Upgrades Walgreen to Overweight; Transforming Global Supply

JP Morgan upgraded Walgreen

from Neutral to Overweight and raised the price target from $41.00 to $55.00. JP Morgan analyst Lisa C. Gill wrote, "Taking a page from the Alliance Boots playbook, WAG unexpectedly announced a new long-term strategic relationship with ABC yesterday. We see this latest deal as a key step in achieving Stefano Pessina's broader vision of engineering a transformational shift in the global pharmaceutical supply chain. While WAG shares have had a strong run, driven by the improving comp story and greater visibility into Alliance Boots, we believe there is still additional upside, and we expect positive momentum to continue as we highlight accretion from the ABC agreement, ongoing Alliance Boots synergy realization, and the earnings tailwind from healthcare reform beginning in CY14." Walgreen closed at $44.74 on Tuesday.