Morgan Stanley On Walgreens 2Q Estimates

Morgan Stanley reports positive estimates for Walgreens' WAG second quarter.

According to Morgan Stanley, "Earnings on March 22: After meaningful earnings beats in the last 2 quarters, we again see upside to consensus estimates for F2Q as the company's cost control efforts combine with the strong flu-driven sales (already released). As the flu season catalyst is peaking, we believe the next catalyst will be valuation expansion in anticipation of the 2012 generic wave, which will kick off with the November expiration of Lipitor, the largest drug in the market."

WAG has an Overweight Rating and a $50 PT.

WAG closed at $41.17 yesterday.