Positive Outlook for Cencora Amid Walgreens’ Transition to Private Ownership

Mizuho Securities analyst Ann Hynes has maintained their bullish stance on COR stock, giving a Buy rating on February 28.

Ann Hynes has given her Buy rating due to a combination of factors surrounding Cencora’s relationship with Walgreens. With Walgreens being taken private by Sycamore Partners, the risk of a potential bankruptcy, which posed a significant threat to Cencora, is notably reduced. Sycamore’s expertise in retail turnarounds suggests a positive outlook for Walgreens, which is crucial as it constitutes a significant portion of Cencora’s revenue.
Moreover, the potential for Walgreens to maintain its distribution contract with Cencora remains strong. Despite the possibility of store closures, the focus on maximizing prescription count supports the continuity of their partnership. Additionally, the strategic importance of Cencora as a primary drug distributor for Walgreens is likely to persist, given the competitive landscape and existing alliances in the pharmaceutical supply chain.

In another report released on February 28, Argus Research also maintained a Buy rating on the stock with a $280.00 price target.

Based on the recent corporate insider activity of 99 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COR in relation to earlier this year.