Deutsche Bank Gives Analyst Day Preview On Walgreens

Walgreens WAG will host its Analyst Day in Chicago on November 4. Deutsche Bank expects the company to discuss progress on the initiatives outlined at the 2008 Analyst Day, like slowing store growth, Rewiring for Growth cost savings, and Specialty Pharmacy, in addition to new initiatives. Deutsche Bank also hopes to get an update on recent sales trends, the outlook for the cold & flu season, and any additional color on the roll-out of the CCR initiative. Maintain our Hold rating as valuation is fair given choppy sales and challenges to leveraging SG&A. At the '08 Analyst Meeting, management provided 7 key initiatives to get the company back to growth and to position Walgreens as a more customer-focused company. These included: slowing store growth; re-inventing the customer experience; transforming community pharmacy; expanding Health & Wellness; expanding Specialty Pharmacy; and broadening/deepening payer relationships. Deutsche Bank has a Hold rating and $35 PT on WAG WAG closed Monday at $34.05