UBS Starts AmerisourceBergen (ABC) at Neutral

October 6, 2016 6:51 AM EDT
Get Alerts ABC Hot Sheet
Price: $69.14 -13.03%

Rating Summary:
    7 Buy, 13 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 50 | New: 20
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UBS initiates coverage on AmerisourceBergen (NYSE: ABC) with a Neutral rating and a price target of $87.00.

Analyst Michael Cherny commented, "We are initiating coverage of AmerisourceBergen with a Neutral rating and an $87.00 price target. ABC has undertaken a number of strategic shifts under the leadership of Steve Collis, including a significant strategic partnership with Walgreens Boots Alliance (which included the transfer of a ~24% stake in ABC) and the expansion into animal health and compounding. While these moves have driven outsized earnings growth, the near-term outlook due to generic inflation headwinds and the impact of contract re-pricings (notably Kaiser) provide limited earnings upside opportunities, in our view. Therefore we view a fair risk/reward profile for ABC shares at current levels."

For an analyst ratings summary and ratings history on AmerisourceBergen click here. For more ratings news on AmerisourceBergen click here.

Shares of AmerisourceBergen closed at $80.03 yesterday.

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