CI - AmerisourceBergen downgraded at Evercore on valuation future operating performance

• Evercore ISI has downgraded AmerisourceBergen ( NYSE: ABC ) to in line from outperform citing valuation, concerns on future operating performance, and Walgreens Boots Alliance's ( WBA ) May sale of 6M AmerisourceBergen shares.
• The firm also lowered its price target to $150 from $165 (~5% upside based on Friday's close).
• Analyst Elizabeth Anderson wrote that the current valuation of ~9x 2023 EBITDA is the highest seen since 2016.
• She added that Walgreen Boots ( WBA ) is likely to monetize its remaining 25.2% stake in AmerisourceBergen ( ABC ).
• Anderson noted that contributions from COVID therapies in the future may not be as strong as anticipated, and expressed concern over the potential of Cigna ( CI ) to transition distribution of Humira away from the drug wholesaler. The therapy accounts for ~$9B-$10B of AmerisourceBergen's ( ABC ) revenue.
• Seeking Alpha contributor Deep Value Ideas provides an assessment of AmerisourceBergen's ( ABC ) growth prospects.

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