A Citi analyst upgraded shares of drugstore operator Walgreen Co. on Wednesday, citing improving sales and better profit opportunities for the chain with a regional distribution center in Windsor and stores throughout Connecticut, The Associated Press reports.
Citi Investment Research analyst Deborah L Weinswig upgraded shares of Walgreen to “Hold” from “Sell” and boosted her target price on the shares to $43 from $33, citing sales trends in January and a pipeline of new initiatives that are expected to continue to drive growth. She also cited recent meetings with management.
Weinswig said she believes the company’s January sales are “trending better than expected” because of the flu season. She now expects sales at stores open at least a year to rise between 3 percent and 5 percent, Previously she forecast a 2 percent to 4 percent boost. She said, on average, analysts on Wall Street expect a 3.1 percent boost.
Sales at stores open at least a year is an important retail metric because it measures sales at existing stores.
“In addition to stronger-than-expected same-store-sales trends in January, we believe Walgreen has initiatives in the pipeline to drive continued improvement,” she said, citing development of the company’s “loyalty-customer experience” along with cost savings programs and profit opportunities.
