AmerisourceBergen (ABC) Rating Increased to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of AmerisourceBergen (NYSE:ABC) from a hold rating to a buy rating in a research note released on Wednesday morning. The brokerage currently has $105.00 target price on the stock.

According to Zacks, “AmerisourceBergen has been trading below the broader industry over the last year. However, the company is expected to benefit from generics growth. AmerisourceBergen has been actively pursuing acquisitions to strengthen its core areas. Solid performance in the Pharmaceutical Distribution Segment is a positive. Strong sales in the oncology unit have enhanced AmerisourceBergen Drug Corporation (ABDC) sales.  The company has announced that it will acqure H.D. Smith, the largest independent wholesaler in the United States. On the flipside, AmerisourceBergen faces headwinds due to the slowdown in hepatitis C revenues and conversion of branded drugs to the lower price generics. Furthermore, a temporary slowdown in PharMEDium's growth is expected to mar the company’s bottom line. “

Several other equities analysts also recently issued reports on the stock. Robert W. Baird reaffirmed a buy rating and set a $96.00 price target on shares of AmerisourceBergen in a research note on Monday, November 6th. Cowen raised shares of AmerisourceBergen from a market perform rating to an outperform rating in a research report on Tuesday, October 10th. Mizuho set a $92.00 price target on shares of AmerisourceBergen and gave the company a hold rating in a research report on Tuesday, October 24th. Needham & Company LLC lowered their price target on shares of AmerisourceBergen from $93.00 to $86.00 and set a buy rating on the stock in a research report on Monday, November 6th. Finally, Jefferies Group set a $85.00 price target on shares of AmerisourceBergen and gave the company a hold rating in a research report on Sunday, October 29th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. The company currently has an average rating of Buy and a consensus price target of $95.96.

AmerisourceBergen (ABC) traded up $1.14 during trading on Wednesday, reaching $95.32. 1,342,293 shares of the company’s stock traded hands, compared to its average volume of 1,418,609. The company has a market cap of $20,787.58, a PE ratio of 51.52, a P/E/G ratio of 1.65 and a beta of 0.99. The company has a debt-to-equity ratio of 1.83, a quick ratio of 0.48 and a current ratio of 0.91. AmerisourceBergen has a 52-week low of $71.90 and a 52-week high of $97.85.

AmerisourceBergen (NYSE:ABC) last announced its earnings results on Thursday, November 2nd. The company reported $1.33 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.32 by $0.01. AmerisourceBergen had a net margin of 0.27% and a return on equity of 56.29%. The firm had revenue of $39.12 billion for the quarter, compared to analyst estimates of $40.10 billion. During the same quarter in the prior year, the business posted $1.30 EPS. The business’s revenue was up 4.2% compared to the same quarter last year. equities analysts forecast that AmerisourceBergen will post 6.14 EPS for the current year.

In other AmerisourceBergen news, CFO Tim G. Guttman sold 11,600 shares of the business’s stock in a transaction that occurred on Wednesday, January 3rd. The shares were sold at an average price of $93.40, for a total value of $1,083,440.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Lazarus Krikorian sold 16,427 shares of the business’s stock in a transaction that occurred on Thursday, November 30th. The stock was sold at an average price of $84.86, for a total transaction of $1,393,995.22. Following the completion of the transaction, the senior vice president now directly owns 23,360 shares of the company’s stock, valued at approximately $1,982,329.60. The disclosure for this sale can be found here. Insiders have sold a total of 198,823 shares of company stock worth $16,666,738 in the last ninety days. 27.40% of the stock is currently owned by insiders.

Hedge funds have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. increased its stake in shares of AmerisourceBergen by 107.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 5,363,429 shares of the company’s stock worth $434,385,000 after acquiring an additional 2,776,287 shares in the last quarter. Janus Henderson Group PLC raised its position in shares of AmerisourceBergen by 660.8% during the second quarter. Janus Henderson Group PLC now owns 2,574,746 shares of the company’s stock valued at $243,392,000 after buying an additional 2,236,319 shares during the last quarter. Harding Loevner LP raised its position in shares of AmerisourceBergen by 89.6% during the third quarter. Harding Loevner LP now owns 3,166,794 shares of the company’s stock valued at $134,939,000 after buying an additional 1,496,761 shares during the last quarter. Wells Fargo & Company MN raised its position in shares of AmerisourceBergen by 42.9% during the second quarter. Wells Fargo & Company MN now owns 3,344,441 shares of the company’s stock valued at $316,149,000 after buying an additional 1,003,327 shares during the last quarter. Finally, Point72 Asset Management L.P. bought a new stake in shares of AmerisourceBergen during the third quarter valued at approximately $75,681,000. 67.83% of the stock is owned by institutional investors and hedge funds.

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About AmerisourceBergen

AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company’s segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers.

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