BofA Securities on Cencora Inc (COR): we view acquisition of EyeSouth Partners' retina biz 'positively'

BofA Securities analyst Allen Lutz reiterated a Neutral rating and $380.00 price target on Cencora Inc (NYSE: COR)

The analyst commented, "This morning, Cencora announced the acquisition of EyeSouth Partners’ retina business for $1.1Bn. As part of the announcement, Cencora reaffirmed FY26 guidance and does not currently contemplate the transaction closing in its FY26... We view the transaction positively as the deal expands Cencora’s position in the retina market where we estimate COR has 1-2% share today. For refence, the EyeSouth Partners’ deal would more than double CORs market share from 300 physicians to more than 700, increasing market share in retina to ~3%+. The acquisition is consistent with the company’s capital deployment strategy and we believe the MSO strategy has positioned COR for upcoming biosimilar launches that will take place toward the end of the decade (see our biosimilar TAM note here). Although Cencora has not indicated plans to co-manufacture biosimilars, we previously estimated a $70MM+ EBIT TAM opportunity in CY2027 from the Eylea biosimilar launch, with today’s announcement more than doubling that TAM. We see continued opportunity for Cencora to drive synergies with the expansion of MSO assets through drug purchasing, driving backoffice efficiencies, and technology. We look for updates on the timing of the transaction closing and additional updates on potential EPS contributions. We maintain our Neutral rating on COR as we see valuation as reflecting the strong growth profile."

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

Shares of Cencora Inc closed at $326.91 yesterday.

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