Goldman Sachs Decreases Price Target On Walgreen To $47

According to Goldman Sachs, Walgreen WAG price target is decreased to $47. Goldman Sachs said that WAG's underlying May quarter results exceeded our expectation, with EBIT beating our forecast in high-quality fashion, as gross margin rate exceeded our estimate despite input cost pressures, offset in part by higher SG&A, which we view as discretionary in the context of better gross profit dollars. “We trim our 12-month price target by $1, to $47. Our price target is based on risk/reward (P/E) and DCF but now incorporates a 25% probability that the conflict with ESRX is not resolved, resulting in a 6% reduction in WAG EPS; this scenario drives our price target lower.” Walgreen closed yesterday at $43.28.