Walgreen’s 2010 Estimate Cut at Credit Suisse (WAG)

in Gold Gold Investing by admin — March 19, 2010 6:31 am | no comments

Drugstore chain operator Walgreen Company ( WAG ) saw its 2010 earnings estimate lowered slightly on Friday by analysts at Credit Suisse. The analyst cut its 2010 EPS to $2.23 from $2.25, while its 2011 estimate has been set at $2.70. Suisse noted that Walgreen’s near-term outlook is challenging, but maintained its “Outperform” rating and $42 price target for WAG. Walgreen shares, which closed at $34.82 on Thursday, were mostly flat in premarket trading Friday. The Bottom Line We recently removed shares of WAG from our “recommended” list back on Nov.17, when the stock was trading at $39.40. The company has a dividend yield of 1.58%, based on last night’s closing stock price of $34.82. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $38-$40 price levels. We would remain on the sidelines for now. Walgreen Company ( WAG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .