Citi Reiterates Hold on Walgreen

Citi is out with its report today on Walgreen WAG, reiterating Hold. In a note to clients, Citi writes, "WAG delivered strong +4.1% topline growth during F3Q11 as its Customer Centric Retailing initiative continued to gain traction by driving more trips and increased basket size. Looking ahead, we expect this momentum to carry into F4Q11, as WAG continues to drive traffic and pass along higher product costs. However, our +3.3% forecast also reflects more difficult compares in 4Q as well as pressure on pharmacy sales from greater generic drug penetration. In addition, uncertainty surrounding WAG and ESRX's relationship remains as the companies try to come to amicable terms. We reiterate our Hold (2M) rating." Citi maintains a $48 PT on WAG. Shares of WAG closed Tuesday at $41.59.