Cencora, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Allen Lutz from Bank of America Securities maintained a Hold rating on the stock and has a $380.00 price target.
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Allen Lutz has given his Hold rating due to a combination of factors surrounding Cencora’s recent strategic moves and financial outlook. The company’s decision to acquire the remaining stake in OneOncology is aligned with its long-term strategy, yet it has led to a pause in share repurchases and an expectation that the FY26 adjusted EPS will be at the lower end of the guidance range. This acquisition, while consistent with Cencora’s capital deployment strategy, is expected to be neutral to adjusted diluted EPS in the first year post-transaction, indicating limited immediate financial upside.
Furthermore, although Cencora has raised its long-term guidance for adjusted operating income and EPS growth, reflecting potential future benefits from the acquisition, the current valuation appears to already account for these growth prospects. The price objective remains at $380, suggesting limited upside from the current price of $346, which supports the Hold rating. Overall, while the acquisition is strategically sound, the near-term financial impact and current valuation justify maintaining a neutral stance on the stock.
In another report released on December 9, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $363.00 price target.