Cencora

(New York Stock Exchange)
Back to all articles
Somewhat Bearish -25

Wells Fargo Maintains Overweight Rating on Cencora (COR) - Insider Monkey

AI-generated analysis

πŸ“‰ Wells Fargo lowered Cencora's price target to $331 from $429 while maintaining an Overweight rating.

πŸ“‰ Citi reduced its price target to $355 from $405, citing disappointing fiscal Q2 U.S. healthcare results.

πŸ’° Cencora reported Q2 adjusted EPS of $4.75, slightly beating the consensus estimate of $4.73.

πŸ“‰ Revenue came in at $78.4B, missing the consensus estimate of $81.04B.

🀝 Core growth trends remain generally in line with peers Cardinal Health and McKesson.

πŸ’Έ The company made progress on debt reduction during the reported quarter.

πŸ”„ Cencora expects to resume opportunistic share repurchases in the second half of the fiscal year.

πŸ“ˆ CEO Robert P. Mauch emphasized underlying business strength and long-term value creation.

πŸ” The valuation gap versus peers could narrow if core growth remains at current levels.

Bullish Signals
  • Cencora beat earnings expectations with adjusted EPS of $4.75 versus the consensus of $4.73.
  • The company is making progress on debt reduction, improving its balance sheet health.
  • Management plans to resume opportunistic share repurchases in the second half of the fiscal year.
  • Core growth trends remain aligned with industry peers despite broader market slowdowns.
  • CEO Robert P. Mauch highlighted the underlying strength of the business and focus on long-term value.
Risk Factors
  • Wells Fargo lowered its price target to $331 from $429 due to disappointing U.S. healthcare earnings growth.
  • Citi reduced its price target to $355 from $405, also citing disappointing fiscal Q2 results.
  • Revenue of $78.4B missed the analyst consensus estimate of $81.04B.
Full Analysis
Wells Fargo analyst Stephen Baxter maintained an Overweight rating on Cencora, Inc. (NYSE:COR) but lowered its price target to $331 from $429 on May 11, 2026. The firm cited disappointing U.S. healthcare earnings growth as the primary driver for the adjustment, though it noted that Cencora's core growth trends remain aligned with peers like Cardinal Health and McKesson. Citi also reduced its price target to $355 from $405 on May 7, 2026, while keeping a Buy rating. Both analysts expressed disappointment regarding the fiscal Q2 U.S. healthcare results. Despite these analyst downgrades, Cencora reported adjusted EPS of $4.75 against a consensus of $4.73 and revenue of $78.4B versus an estimate of $81.04B. CEO Robert P. Mauch stated that the company delivered solid quarterly results with continued execution to support customer needs. The firm highlighted progress in debt reduction during the quarter and plans to resume opportunistic share repurchases in the second half of the fiscal year, citing underlying business strength and a focus on long-term value creation.