Morgan Stanley Reiterates Equal-Weight Rating on AmerisourceBergen Corp. on WAG Deal

In a report published Wednesday, Morgan Stanley analyst Ricky R. Goldwasser reiterated an Equal-Weight rating on AmerisourceBergen Corp. ABC. In the report, Goldwasser noted, “Following its WAG win, we have increased our ABC FY14 and CY14 EPS estimates to $3.70 (from $3.52) and $3.92 (from $3.68). Our new estimates include $28 billion in incremental WAG revenue and $0.20 of EPS benefit (including ERP delay impact) in FY14 growing to an estimated ~$30 billion and ~$0.35 in earnings by FY15 once WAG has transitioned a majority of its generic purchasing to ABC.” AmerisourceBergen Corp. closed on Tuesday at $50.06.