Analyst Kevin Caliendo from UBS maintained a Buy rating on Cencora and increased the price target to $415.00 from $380.00.
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Kevin Caliendo has given his Buy rating due to a combination of factors that highlight Cencora’s strong growth potential and market position. The company’s US Healthcare Solutions segment has shown impressive organic growth, particularly in high-margin specialty areas, which enhances confidence in sustained US pharma growth. Additionally, the potential for Cencora to increase its stake in OneOncology is considered in long-term guidance, further supporting growth prospects.
Furthermore, the international segment is showing positive signs, with a turnaround in the World Courier business and momentum in Alliance and 3PL operations. Caliendo also notes improved EBIT trends in the US Healthcare sector, leading to an increase in earnings per share estimates for future fiscal years. The valuation reflects these positive developments, with a price target increase based on strong fundamentals and solid free cash flow generation, justifying a higher multiple for the stock.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a $400.00 price target.