Overview
Morgan Stanley moved Cencora Inc (NYSE: COR) up from an Equalweight rating to Overweight and raised its price target to $400.00 from $361.00. The firm highlighted Cencora's position in specialty pharmaceuticals and cited the company's expedited acquisition of a majority stake in OneOncology, a transaction management expects to complete by March 31, 2026. Cencora carries a market capitalization of $68.19 billion and was trading at $350.54, close to its 52-week high of $377.54 at the time of the note.
Dividend and shareholder returns
Data from InvestingPro included in the research note show Cencora has paid dividends for 25 consecutive years, and reported dividend growth of 17.65% over the last twelve months. Morgan Stanley frames these dividend metrics and the company’s specialty focus as factors that support a higher rating from investors looking for both income and growth exposure within healthcare distribution.
Strategic portfolio moves
In addition to the OneOncology acquisition, Morgan Stanley pointed to Cencora’s review of strategic alternatives for several non-core assets - specifically MWI Animal Health, Profarma, U.S. Consulting Services, and portions of PharmaLex. The bank described these initiatives as steps toward optimizing the company’s business mix, an activity it expects investors to view favorably.
Forecast revisions and earnings outlook
Morgan Stanley raised its fiscal year 2026 U.S. Healthcare Solutions AOI growth forecast to 10.8% year-over-year from a prior estimate of 10.4%, reflecting an incrementally bullish view on underlying fundamentals in core drug distribution. The firm also projects International AOI growth of 7.0% year-over-year versus a consensus estimate of 6.5%. On that basis the bank models earnings per share of $17.63 for fiscal 2026, marginally above the consensus of $17.62.
Concurrent analyst activity and corporate moves
Other firms have issued differing assessments as Cencora advances its strategy. Jefferies upgraded the stock to Buy, citing execution and an enhanced long-range plan. Bank of America Securities trimmed its price target to $360 while maintaining a Neutral rating, noting concerns about valuation. Evercore ISI raised its price target to $420 and described the OneOncology transaction as a prudent deployment of capital. Separately, Cencora announced plans to acquire the remaining stake in OneOncology for approximately $5 billion, valuing the full enterprise at $7.4 billion; the transaction contemplates purchasing equity interests and retiring existing corporate debt. The company also appointed Ellen Cooper, CEO of Lincoln Financial, to its board of directors effective January 2026.
Context
These actions - a major specialty deal, portfolio reviews, analyst revisions, and a board appointment - together have created a dynamic period for Cencora as market participants reassess the company’s capital allocation and growth trajectory.
Note - Information above reflects the details provided in the recent analyst notes and company disclosures referenced.