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Cencora’s Promising Growth and Conservative Guidance: A Buy Rating with $288 Price Target

Cencora’s Promising Growth and Conservative Guidance: A Buy Rating with $288 Price Target

TD Cowen analyst Charles Rhyee maintained a Buy rating on Cencora (CORResearch Report) yesterday and set a price target of $288.00.

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Charles Rhyee has given his Buy rating due to a combination of factors stemming from Cencora’s recent financial performance and future growth prospects. The company has shown promising results in the first quarter of fiscal year 2025, prompting management to raise their adjusted earnings per share (EPS) guidance for the year. Rhyee estimates a significant year-over-year growth in 2025’s adjusted EPS, driven primarily by robust growth in the U.S. health care segment and stable performance internationally.
Furthermore, Rhyee highlights the conservative nature of Cencora’s guidance, suggesting that there is potential for stronger trends to continue throughout the year. The acquisition of RCA has also been factored into future earnings estimates, contributing positively to the company’s adjusted operating income. With these considerations, Rhyee maintains a price target of $288, supported by discounted cash flow analysis, indicating that the stock has room to appreciate based on its current valuation.

In another report released yesterday, Leerink Partners also maintained a Buy rating on the stock with a $301.00 price target.

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