Morgan Stanley Reiterates Equal-Weight Rating on Walgreen Company on ABC Deal

In a report published Wednesday, Morgan Stanley analyst Mark Wiltamuth reiterated an Equal-Weight rating on Walgreen Company WAG. In the report, Wiltamuth noted, “The Amerisource Bergen pact is a positive sign, in our view, from a large player in the drug supply chain that Walgreens and Alliance Boots can achieve the ~$450M in generic drug purchasing synergies (out of a total synergies of $1B) that management laid out. Many investors were concerned that the combined entity could do so, but we see the Amerisource Bergen pact as validation from a major player in the supply chain that such a goal is obtainable. Under the pact, Amerisource Bergen will distribute all pharmaceuticals for Walgreens and will eventually purchase generic drugs for all of its customers through Walgreens/Alliance Boots.” Walgreen Company closed on Tuesday at $44.74.