Drug store chain operator Walgreen Company (WAG) on Monday caught a big downgrade from analysts at Morgan Stanley.

The firm said it cut its rating on WAG from “Overweight” all the way down to “Underweight” with a $29 price target. That target suggests an 11% downside to the stock’s Friday closing price of $32.63.

Morgan Stanley said it made the move because a deal between WAG and prescription benefits provider Express Scripts (ESRX) now appears less likely.

Walgreen shares were unchanged in premarket trading Monday.

The Bottom Line
Shares of Walgreen Company (WAG) have a 2.76% dividend yield, based on Friday’s closing stock price of $32.63. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $34-$37 price levels.

Walgreen Company (WAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 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.