Deutsche Cuts Price Target on Walgreen (WAG) Following Quarterly Miss

Deutsche Bank is maintaining its Hold rating on shares of Walgreen (NYSE: WAG) following the release of its its first quarter results. The firm also is lowering its price target from $31.50 to $30.00.

Shares of WAG are trading down just slightly on the day after opening down roughly 6 percent.

Management noted no progress in the negotiations with ESRX and highlighted $0.07-$0.21 per share in earnings for fiscal 2012 is possibly still at risk during its conference. The company still does forecast it will not be part of ESRX at the beginning of 2012.

For the quarter, sales rose 4.7 percent year over year as comps increased 2.5 percent for the quarter. Gross margin fell 40 bps while EPS fell short of the Street's consensus and firm's estimate. The firm notes the lower gross margin was due to weak pharmacy margins and flat front end margins.

For FY12 and FY13, Deutsche Bank reiterated its previous earning estimates of $2.65 and $2.75 per share.

For an analyst ratings summary and ratings history on Walgreen click here. For more ratings news on Walgreen click here.

Shares of Walgreen closed at $33.50 yesterday.

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