UPDATE: ISI Group Downgrades AmerisourceBergen to Buy Following Share Outperformance

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ISI Group downgraded AmerisourceBergen
ABC
from Strong Buy to Buy and raised the price target from $51.50 to $53.00. ISI Group commented, "AmerisourceBergen shares have advanced ~23% since October 2012, massively outperforming both the Healthcare Index (XLV) and the broader S&P 500 by ~1800 and ~1500 bps, respectively. … While we believe shares remain attractive, we contend that the capital return opportunity at ABC is leveling off from an incremental growth perspective and is increasingly well understood by investors (driving recent share price appreciation). As such, we are downgrading ABC from Strong Buy to Buy while raising our price target from $51.50 to $53.00 (~7.5x FYE14 EV/EBITDA) representing ~13% total return from current levels." AmerisourceBergen closed at $48.25 on Monday.
Posted In: Analyst ColorPrice TargetAnalyst RatingsISI Group
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