Citigroup Maintains Sell Rating On WAG

Walgreen Company WAG is optimistic as it moves through F2011 for three reasons, Citigroup reports. The reasons are: 1) The CCR stores continue to gain traction 2) There is a significant opportunity to increase basket size with fresh food offerings 3) The expansion of the 90-day at retail Rx program. “However, we believe a weak consumer and competition from other value-oriented formats will continue to have a negative impact on FE sales,” Citigroup writes. “Additionally, the generic wave will have limited impact until F2013, making Rx SSS difficult past the 2010/11 flu season. We reiterate our Sell (3H) rating.” Walgreen Company closed Wednesday at $41.20.