William Blair Assigns Outperform On Walgreen Following Release Of Fiscal Fourth-Quarter Results
In a research report released today, William Blair analyst Mark Miller, assigned an Outperform rating on Walgreen Company (NYSE:WAG), following the release of the company’s fiscal fourth- quarter results. The company’s sales increased by 6.2% to $19.06 billion and comp sales grew by 5.6%. No price target provided.
Miller noted, “Walgreens should see improving front-end results heading into fiscal 2015 with CVS Health’s (CVS $80.86; Outperform) decision to exit the cigarette business. As of Wednesday, the company had pulled tobacco product from all of its stores. This should be a boost to Walgreens’ front-end traffic in the coming months, and possibly also a positive for the pharmacy as an estimated 25% of script customers are smokers. Meanwhile, Walgreens has now completely cycled the rollout of tobacco products at the dollar stores, which should now become less of a headwind.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Miller has a total average return of 4.4% and a 56.3% success rate. Miller has a -14.8% average return when recommending WAG, and is ranked #1318 out of 3270 analysts.