Citi Says Sell Walgreen (WAG)

Citi Investment Research has a Sell rating and a $31 price target on Walgreen Co WAG, despite November same-store-sales beating their expectations. In a note sent to clients, Citi writes, "WAG reported total Nov. SSS of 3.2%, above our 0 to 2% estimate, consensus of 1.7%, and vs. 3.9% LY. Nov. results were driven by higher Rx SSS (vs. our est.). WAG was positively impacted by a calendar day shift in Nov. and the company also administered more flu shots (see Fig 2). However, a lower incidence of cough, cold and flu had a negative impact on Rx SSS. Traffic was positive in Nov. for the first time since Aug. While we were impressed with WAG's results this month, we reiterate our Sell (3H) rating on WAG until we see consistent topline improvement, and recommend Buy (1M) rated CVS." Shares of WAG gained 75 cents on Friday to close at $36.86, a gain of over 2%.