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 (NYSE: ABC) 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.
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