NEW YORK (TheStreet) -- Shares of Walgreen Co. (WAG) are climbing, higher by 0.22% to $68.74 in early market trading on Wednesday, after the drug retailer had coverage initiated this morning by analysts at Citigroup with a "buy" rating and a price target of $80 on shares, citing a positive 2016 outlook.
Analysts at the firm believe that given low investor expectations, investor confidence in the company's ability to achieve its fiscal 2016 targets could increase if the company achieves its $3.40 fiscal 2015 EPS estimate.
Citigroup added that, "despite likely investor skepticism due to recent misses and the downward revision to the fiscal 2016 target in August, we believe the company's 2016 targets are achievable and possibly conservative."
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The firm noted that it believes further stock upside remains as the growth prospects do not appear to be fully appreciated in the share price.
Separately, TheStreet Ratings team rates WALGREEN CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WALGREEN CO (WAG) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."