Morgan Stanley Reiterates Neutral and PT of $43 on Walgreen Company

Morgan Stanley reiterated its Neutral rating on Walgreen Company WAG. At the same time, Morgan Stanley left its price target unchanged at $43 after the company reported better than expected quarterly earnings results. In a research report published today, Morgan Stanley states, "WAG reported 3Q11 EPS yesterday morning above expectations, although the announcement that it would no longer be part of the Express Scripts pharmacy network beginning 1/1/2012 drove the stock price weakness... We maintain our Neutral rating on WAG, pointing to the Express Scripts overhang, coupled with other potential headwinds, including fewer near-term generic launches, and potential pharmacy reimbursement and front end margin pressure." On Tuesday, Walgreen lost 4.21% to close the day at $43.28.