Bank of America Reiterates Buy, Target of $2.80 on AmerisourceBergen

In a company update, Bank of America maintains its Buy rating and target price of $2.80 per share on AmerisourceBergen

as the company highlights efficiency value-adding initiatives in its investor day. Bank of America says, "management is confident robust growth can continue longer term on favorable demographic trends; growth in generics, specialty, and biosimilars; continued operating efficiency improvements owing to the successful ERP implementation; and plans for strategic acquisitions, with newer emphasis on international markets, building on FY11's expansions in Canada. Of an expected $700-$800 million in free cash flow this year, management expects to return at least 30% to shareholders in the form of stock buybacks and dividends." ABC closed at $35.80 per share on Thursday.