Wells Fargo raises Cencora stock price target to $354 on strong U.S. Healthcare performance

Published 13/08/2025, 12:12
Wells Fargo raises Cencora stock price target to $354 on strong U.S. Healthcare performance

Investing.com - Wells Fargo raised its price target on Cencora Inc (NYSE:COR) to $354.00 from $337.00 on Wednesday, while maintaining an Overweight rating on the stock. The healthcare services giant, with a market capitalization of $56 billion, is currently trading near its 52-week high after delivering a strong 29% return year-to-date. According to InvestingPro analysis, the stock appears fairly valued at current levels.

The investment firm cited strong core U.S. Healthcare performance as the primary driver for the adjustment, which offset moderately weaker international results. The company maintains a strong financial health score of "GOOD" according to InvestingPro metrics, with 15+ additional insights available to subscribers.

Wells Fargo increased its adjusted EPS estimates for Cencora by 0.6% for fiscal year 2025 to $15.93, by 1.8% for fiscal year 2026 to $17.55, and by 2.4% for fiscal year 2027 to $19.68.

The new price target is based on 18x next-twelve-months plus one year earnings per share, which aligns with Cencora’s current NTM P/E multiple but represents a premium compared to historical averages.

Wells Fargo justified the valuation premium by pointing to a strong industry backdrop, potential for upward estimate revisions, and Cencora’s continued execution on mergers and acquisitions.

In other recent news, Cencora Inc. reported its third-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $4, exceeding the forecast of $3.84. Revenue also outperformed predictions, reaching $80.7 billion compared to the anticipated $80.31 billion. These results highlight Cencora’s strong performance in the quarter. Despite the positive earnings report, the company’s stock experienced a decline, which was attributed to broader market conditions rather than the company’s financial results. There were no reports of mergers or acquisitions involving Cencora Inc. during this period. Additionally, no analyst upgrades or downgrades were mentioned in recent developments. Investors may want to keep an eye on how Cencora navigates potential future challenges as indicated by market reactions.

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