On Tuesday, BofA Securities revised its stock price target for Cencora Inc (NYSE: COR), increasing it to $260 from $255, while keeping a Neutral stance on the stock. This adjustment comes after the analyst's participation in Cencora's inaugural virtual Product Showcase event.
The event left the analyst with increased confidence in Cencora's ability to drive innovation throughout the supply chain with its technology solutions and partnerships.
Cencora presented a variety of new products during the event, which included advancements in inventory management, clinical trial support, data analysis, drug tracking, and risk management. The showcased products emphasized Cencora's commitment to going beyond its foundational distribution services, aiming to be a comprehensive partner in the pharmaceutical supply chain.
The firm's analyst acknowledged the positive steps Cencora is taking in expanding its capabilities to manufacturers and providers. The analyst anticipates additional details on how these new programs will contribute to the company's performance.
The raised price objective to $260 is based on a multiple of 17 times the projected CY25 earnings per share (EPS), which is an increase from the previously used multiple of 16.5. This change reflects a broader expansion of multiples among Cencora's peers.
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