UBS Maintains a 'Buy' on AmerisourceBergen (ABC); Lower F2013-14 EPS For Generics + Medco
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Price: $179.98 --0%
Rating Summary:
16 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Buy' on AmerisourceBergen (NYSE: ABC) price target lowered from $47 to $44.
UBS analyst says, "Even though it is still unclear whether or not the Express Scripts (Nasdaq: ESRX) / Medco (NYSE: MHS) merger will be completed, we have decided to take a conservative stance and model our ABC projections with the assumption that the merger will be completed, and that ABC will ultimately lose the Medco drug distribution business when the current contract expires in March 2013. But we do note $0.20-0.25 of EPS upside pot’l for ABC if they are able to capture the entire contract."
"We lower FY13 EPS from $3.20 to $3.05 with subtraction of Medco, but we are also tweaking down our EPS estimates to better account for the lack of material new ‘exclusivity’ generic intro ductions in F2013, coupled with the likely generic deflation expected on many of the key ‘exclusivity’ generic products launched in ABC’s F2012 that will become ‘multi-source’ in ABC’s F2013."
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 $38.84 yesterday.
UBS analyst says, "Even though it is still unclear whether or not the Express Scripts (Nasdaq: ESRX) / Medco (NYSE: MHS) merger will be completed, we have decided to take a conservative stance and model our ABC projections with the assumption that the merger will be completed, and that ABC will ultimately lose the Medco drug distribution business when the current contract expires in March 2013. But we do note $0.20-0.25 of EPS upside pot’l for ABC if they are able to capture the entire contract."
"We lower FY13 EPS from $3.20 to $3.05 with subtraction of Medco, but we are also tweaking down our EPS estimates to better account for the lack of material new ‘exclusivity’ generic intro ductions in F2013, coupled with the likely generic deflation expected on many of the key ‘exclusivity’ generic products launched in ABC’s F2012 that will become ‘multi-source’ in ABC’s F2013."
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 $38.84 yesterday.
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