UPDATE: ISI Group Raises PT on Walgreen Company Following ABC Deal

In a report published Wednesday, ISI Group analyst Ross Muken reiterated a Cautious rating on Walgreen Company

, and raised the price target from $38.00 to $43.00. In the report, Muken noted, “We are reiterating our Cautious rating on WAG shares following today's announcement, as we still view challenges to the long-term strategy of the Alliance Boots transaction and view upside from script recapture related to the ESRX agreement as limited. In addition to 2Q results this morning, WAG announced a 10-year strategic partnership with AmerisourceBergen, replacing WAG's prior distributor, Cardinal Health. The agreement includes access to generic drugs and additional products as well as the opportunity to help Walgreens grow its specialty and manufacturer services business. As part of the transaction, Walgreens and Alliance Boots have been given the right to purchase up to 7% of ABC shares in the open market, as well as equity warrants exercisable for 16% of ABC's diluted equity.” Walgreen Company closed on Tuesday at $44.74.