Citi Maintains Hold on Walgreens

Citi is out with its report today on Walgreens WAG, maintaining Hold. In its report, Citi writes, "We rate the shares of Walgreens Co Hold/Medium Risk (2M). We believe WAG is entering its next phase of double digit earnings growth after 3 years of single digit to negative earnings growth. This next phase is being driven by improved store operations, innovative expense reduction, new growth opportunities (i.e. fresh food and health care services), and beginning in F2013 a return to the generics wave. While we expect improving sales and margin trends at WAG over the near and long term as a result, we believe the shares are currently fairly valued." Citi maintains a $48 PT on WAG. Shares of WAG closed Wednesday at $38.14.