Jefferies initiates coverage on Walgreen Company with a Hold rating and $62.00 price target.
In the report, Jefferies noted, “Walgreens is in the midst of the biggest era of change in company history. After taking a 45% stake in Alliance Boots, and striking a 10-year drug distribution and joint sourcing pact with Amerisource Bergen, now the hard work begins on synergies and execution. As these deal wins are longer-term and we see some margin risk near-term as the company works to turn around negative traffic in the US, we initiate coverage of WAG shares with a Hold.”
I'm not concerned with the HOLD...that will change soon enough.
I agree with you, that HOLD will not last long. It's difficult to understand why they would predict double digit share appreciation and then call it a HOLD. Margin risk at WAG? Jefferies analyst is not paying attention.