I know you put them up to this Yank!!! Read and laugh..WAG's outdated strategy
Jan 28 (Reuters) - Citigroup downgraded Walgreen Co (WAG.N: Quote, Profile, Research) to "sell" from "hold" and cut its price target by $12 to $33, saying the company's outdated strategy was hurting returns and it would face earnings pressures over the next few quarters. In a research note dated Jan. 25, analyst Deborah Weinswig said the drug store chain's strategy of consolidating relatively smaller specialty pharmacies and other "adjacent" businesses would not deliver the synergies required. She said further downside to earnings shortfall is possible as operating expenses and high capital investment may exceed sales growth at least through fiscal year 2008. Walgreen is likely to face diminishing returns going forward as its reliance on organic store growth and prescription file buys may not produce historical mid-double-digit returns, Weinswig added. Shares of Walgreen fell 1 percent to $33.97 in early morning trade on the New York Stock Exchange.