AmerisourceBergen gains on takeover thesis

|About: AmerisourceBergen Corp... (ABC)|By:, SA News Editor

Drug wholesaler AmerisourceBergen (ABC +1.7%) is up on average volume in apparent response to a note from Raymond James analyst John Ransom that it could be a potential acquisition target by Walgreens Boot Alliance (WBA +1.7%) considering the latter's lack of recent deals and its 27% stake in ABC.

He also mentions LabCorp (LH +2%) as another enticing target, offering more upside than ABC with lower risk (opioid-related litigation) but with less financial benefit. WBA is in a joint venture with the lab services provider to open at least 600 LabCorp patient service centers at Walgreens stores over the next four years.

He opines that ABC could go for $95/share and LH for $200.

Related tickers: McKesson (MCK +0.1%); Cardinal Health (CAH +0.6%)

Subscribe for full text news in your inbox