Goldman Sachs Trims PT On CVS; Walgreens Remains CL-Buy

Goldman Sachs maintains its Buy rating on CVS Caremark CVS while trimming its 12-month price target to $40 from $42, principally reflecting lower estimates after troubling guidance from the firm. The company's outlook and commentary offered some sobering assessments of its competitive positioning and analytics, confirming market fears that until now had not been articulated by management or reflected in Street numbers. Goldman Sachs recently raised its estimates and target on Walgreen CompanyWAG, reflecting outstanding January sales, which we expect to flow through to the bottom line. WAG remains rated Buy on the Conviction List, with a $48, 12-month price target. This strong life cycle story – the firm is slowing store growth, reallocating resources to existing assets, and returning cash to shareholders – remains a high-visibility pick for 2011. CVS closed Thursday at $32.92 WAG closed Thursday at $42.31