First Global Reiterates Market Perform on Walgreens

First Global is out with its report today on Walgreens WAG, reiterating Market Perform. In a note to clients, First Global writes, "WAG has decided not to renew its contract with pharmacy benefit manager, Express Scripts Inc. ESRX, with effect from January 1, 2012, due to unfavorable terms put forth by the company, which are detrimental to its interests, as a result of which, is sales will be impacted in the medium term. On the valuation front, the stock trades at a P/E of 15.8x and EV/EBIDTA of 7.7x our FY11 diluted EPS estimate. We reiterate our rating of Market Perform on Walgreen." Shares of WAG closed Friday at $41.39, down 2.82% from Thursday's close.