ABC - AmerisourceBergen upgraded Cardinal Health downgraded at Barclays

Barclays has revised its ratings on medical distributors AmerisourceBergen (NYSE:ABC) and Cardinal Health (NYSE:CAH) with a focus on their exposure to specialty drug distribution. Ahead of its Investor Day next week, the analysts led by Steve Valiquette have the rating on AmerisourceBergen (ABC) to Overweight from Equal Weight with price target raised to $182 from $175 per share implying a premium of ~18% to the last close. The firm forecasts AmerisourceBergen (ABC) to announce a 10 – 13% long-term EPS growth rate next week, underpinned by positive industry trends in Specialty drug distribution. “Given ABC’s large specialty footprint, we believe it has market-leading leverage to positive industry trends with increasing demand for specialty branded biotech drugs, as well as large upcoming generic/biosimilar launch pipelines,” the analysts added. They also mentioned recent pullback in AmerisourceBergen (ABC) as a reason for the upgrade. Downgrading Cardinal Health (CAH) to Equal Weight from Overweight,

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AmerisourceBergen upgraded Cardinal Health downgraded at Barclays