Cencora’s Mixed Performance: Strong U.S. Growth Offset by International Challenges and Strategic Caution

Analyst Erin Wright of Morgan Stanley maintained a Hold rating on Cencora (COR – Research Report), boosting the price target to $313.00.

Erin Wright has given his Hold rating due to a combination of factors impacting Cencora’s performance. The U.S. healthcare segment has shown impressive growth, exceeding expectations and contributing significantly to the company’s earnings per share (EPS) increase. However, the international segment has underperformed, with slower clinical trial activity leading to a downward revision in guidance, although there is potential for improvement in the latter half of the fiscal year.
Despite the strong performance in the U.S. market, the uncertainties in the international operations have led to a cautious outlook. The company’s strategy to expand through acquisitions, such as those of Retina Consultants of America and OneOncology, shows promise, but management’s prudent approach suggests they are not expecting the same level of outperformance to continue. These mixed factors contribute to the Hold rating, reflecting both the potential and the risks associated with Cencora’s current market position.

Wright covers the Healthcare sector, focusing on stocks such as Humana, Align Tech, and Quest Diagnostics. According to TipRanks, Wright has an average return of 13.6% and a 65.33% success rate on recommended stocks.