ABC Is Still Looking Good...

Citigroup has published a research report on AmerisourceBergen Corporation ABC after the company beat 3Q estimates by $0.02 and reported higher revenues than expected. In the report, Citigroup writes "ABC on Nov. 2nd bmo reported F4Q10 $0.50 vs. $0.48 Us/Cons. Co. also beat on the top line with $19.72bn vs. $19.65bn Us/$19.60bn Cons, and raised FY11 (Sept. end) EPS guidance to $2.31 to $2.41 from $2.28 to $2.36 (vs. pre-earnings $2.35 cons), +7% to 12% over FY10. We think the quarter was a ‘clean' beat and are pleased with a modest raise to guidance after a very successful year of 28% EPS growth impacted by generic Eloxatin. We raise our FY11E-FY14E EPS & continue to like the stock on strong execution, favorable macro trends, & reasonable valuation 13x fwd earnings with a relatively low risk profile. Additional share repurchases & further operating leverage offer further upside." Citigroup maintains its Buy rating and $38 price target. AmerisourceBergen closed yesterday at $31.95.