UPDATE: ISI Group Initiates AmerisourceBergen with Overweight, $43.50 PT on Superior Specialty Positioning

ISI Group initiated its coverage on AmerisourceBergen

with a rating of Overweight and price target of $43.50. ISI Group commented, "We are initiating coverage on shares of AmerisourceBergen with an Overweight rating and a price target of $43.50, which on a forward basis equates to ~7x EV/EBITDA and ~13x operating EPS. Our thesis for ABC is based on superior positioning in specialty as well as a highly competitive generic offering, too much pessimism surrounding the potential Medco contract loss, and upside from recent M&A as well as other capital deployment options driving incremental EPS growth." AmerisourceBergen closed at $39.29 on Wednesday.