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Investing.com - Mizuho (NYSE:MFG) reiterated its Outperform rating and $316.00 price target on Cencora Inc (NYSE:COR) Thursday following Walgreens’ quarterly earnings report. The target falls within the broader analyst range of $257.45 to $355, with InvestingPro data showing the stock trading near its 52-week high of $309.35 after posting an impressive 31% gain over the past six months.
Walgreens (NYSE:WBA), Cencora’s largest customer representing approximately 26% of total revenues, reported purchasing $19.7 billion of pharmaceutical inventory from Cencora during its fiscal third quarter of 2025, reflecting 8.5% year-over-year growth.
The pharmaceutical purchase growth aligns with Walgreens’ year-to-date trend, which now stands at $58.8 billion in pharmaceutical inventory purchases from Cencora through nine months, representing 8.4% year-over-year growth.
Walgreens disclosed that as of June 9, 2025, its equity stake in Cencora has fallen below 5% following recent sales, meaning Walgreens is no longer entitled to designate a member to Cencora’s Board of Directors.
Despite a 5% reduction in U.S. store count over the same period, Walgreens’ total U.S. Pharmacy sales grew 11.8% year-over-year, a development Mizuho characterized as positive for Cencora. With a market capitalization of $57.48 billion, Cencora’s current valuation appears fairly priced according to InvestingPro’s Fair Value model, which considers multiple factors including growth prospects and market conditions.
In other recent news, Cencora Inc. reported impressive financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $4.42, exceeding the forecasted $4.06, while revenue reached $75.5 billion, above the anticipated $75.14 billion. Following these results, Cencora raised its full-year EPS guidance to a range of $15.70-$15.95, indicating optimism about future performance. Additionally, Wells Fargo (NYSE:WFC) upgraded Cencora’s stock rating from Equal Weight to Overweight, raising the price target to $337, citing a favorable industry environment and limited exposure to certain market risks. In another development, Cencora announced the appointment of Lori J. Ryerkerk to its Board of Directors, aiming to enhance the board’s expertise in global supply chain management. This move aligns with the company’s long-term growth strategy. These recent developments reflect Cencora’s strategic focus and robust positioning in the pharmaceutical industry.
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