Barclays Maintains an 'Overweight' on AmerisourceBergen (ABC); Gemcitabine pricing assumptions help our Q4, F12 Q1
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Price: $179.98 --0%
Rating Summary:
16 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
16 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Overweight' on AmerisourceBergen (NYSE: ABC) price target of $44.00.
Barclays analyst says, "Coming into the ABC Q4 results tomorrow, and after reviewing figures for both its customers and comparable supply chain peers, we are doing two things: We are adjusting up our top line assumptions for FY12, now calling volumes slightly down to flat versus FY11. We previously had assumed some incremental loss of some Medco business with a UNH partial switchover in 2012 (confirmed to be all in 2013); We are adjusting up our profit assumptions on gemcitabine, given the suggested aggressive supplier pricing now being seen (up to 85% off branded) and given the moderation in ASP through calendar year-end that should be providing incremental provider and supply chain spread improvement (we estimate $0.04-$0.05 EPS contribution in the September quarter). We believe gemcitbine could also contribute more than our previous estimate (we estimate $.05) in the December quarter. We are keeping our docetaxel assumptions intact."
For more ratings news on AmerisourceBergen click here and for the rating history of AmerisourceBergen click here.
Shares of AmerisourceBergen closed at $42.08 yesterday.
Barclays analyst says, "Coming into the ABC Q4 results tomorrow, and after reviewing figures for both its customers and comparable supply chain peers, we are doing two things: We are adjusting up our top line assumptions for FY12, now calling volumes slightly down to flat versus FY11. We previously had assumed some incremental loss of some Medco business with a UNH partial switchover in 2012 (confirmed to be all in 2013); We are adjusting up our profit assumptions on gemcitabine, given the suggested aggressive supplier pricing now being seen (up to 85% off branded) and given the moderation in ASP through calendar year-end that should be providing incremental provider and supply chain spread improvement (we estimate $0.04-$0.05 EPS contribution in the September quarter). We believe gemcitbine could also contribute more than our previous estimate (we estimate $.05) in the December quarter. We are keeping our docetaxel assumptions intact."
For more ratings news on AmerisourceBergen click here and for the rating history of AmerisourceBergen click here.
Shares of AmerisourceBergen closed at $42.08 yesterday.
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