Morgan Stanley Upgrades Cencora Inc (COR) to Overweight

Morgan Stanley analyst Erin Wright upgraded Cencora Inc (NYSE: COR) from Equalweight to Overweight with a price target of $400.00 (from $361.00).

The analyst comments "COR - Upgrading to OW - Specialty Leader Taking Steps to Simplify: COR has positioned itself as a leader in Specialty which will be amplified by the accelerated acquisition of the majority stake in OneOncology (close by March 31, 2026), allowing for further integration and synergies with RCA/broader specialty. COR is exploring strategic alternatives for non-core assets (MWI Animal Health, Profarma, U.S. Consulting Services and components of PharmaLex), an important step in optimizing its business that should be rewarded. International turnaround should also pick up in FY26, supported by World Courier. We are raising US Healthcare Solutions FY26 AOI growth to +10.8% y/y (from +10.4% and vs. Cons +10.7%) on an incrementally bullish view on fundamentals in core drug distribution. We estimate Intl. AOI growth +7.0% y/y vs. Cons +6.5%, yielding EPS of $17.63 (from $17.57 and vs. Cons $17.62). We roll our valuation forward to CY27 to derive our $400 PT from 20.5x CY27 EPS of $19.53 (from $361 on 20.1x CY26 EPS of $18.02), with a 2:1 bull/bear skew."

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 $350.54 yesterday.

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