Analyst Stephen Baxter from Wells Fargo maintained a Hold rating on Cencora (COR – Research Report) and increased the price target to $274.00 from $251.00.
Stephen Baxter has given his Hold rating due to a combination of factors, primarily focusing on the balance between Cencora’s strong performance in the U.S. market and challenges in its international operations. The company’s recent financial results showed a positive trend in U.S. Healthcare, which led to an increase in earnings estimates. However, this was partially offset by weaker performance in international distribution, which moderated the overall growth outlook.
Despite the upward revision in the price target to $274, reflecting the strength in core U.S. operations, Baxter notes that the valuation appears relatively full compared to other opportunities in the market. This valuation consideration, alongside the mixed performance across different regions, supports the decision to maintain a Hold rating. The analysis suggests that while there is potential for growth, the current price level may not provide significant upside relative to other investment options available.
Baxter covers the Healthcare sector, focusing on stocks such as Cardinal Health, CVS Health, and UnitedHealth. According to TipRanks, Baxter has an average return of 0.3% and a 38.25% success rate on recommended stocks.