Jefferies Upgrades Cencora Inc (COR) to Buy

Jefferies analyst Brian Tanquilut upgraded Cencora Inc (NYSE: COR) from Hold to Buy with a price target of $440.00 (from $330.00).

The analyst comments: "COR has long been a strong execution story, but relative multiple dynamics & risks related to key client Walgreens' store closures kept us sidelined. With Walgreens risks & gov't drug pricing moves cleared, we believe COR's execution & increased LRP are compelling. Incrementally, we see multi-year tailwinds across the Rx distributor space that warrant multiple expansion for the group towards other Best-in-Class Large Cap H/C peers in the mid-20s P/E.

COR has a strong track record of earnings execution & prudent guidance setting, evidenced by only one EPS miss & an avg. EPS beat of 4.4% since F4Q20. While risks related to key client Walgreens have kept us sidelined for years on the name, structural challenges for COR have not materialized. More recently, COR has now cleared risks related to Walgreens' store closure program & Most Favored Nation drug pricing from the gov't, and we now see them capitalizing on an accelerated growth path over the next several yrs."

For an analyst ratings summary and ratings history on Cencora Inc click here. For more ratings news on Cencora Inc click here.

Shares of Cencora Inc closed at $351.75 yesterday.

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