Goldman Reiterates Conviction Buy On AmerisourceBergen (ABC)

Goldman Sachs is reiterating its Conviction Buy rating and $38 price target on shares of AmerisourceBergen Corp. (NYSE: ABC).

In a note sent to clients, Goldman writes, "Today, AmerisourceBergen held its annual Investor Day in New York where management remains “bullish” on the business and its outlook. Importantly, FY2011 guidance of $2.31 to $2.41 was reaffirmed (GS/Street at $2.41/$2.38) which is a signal to us that the overall business is performing well given the absence of key specialty generic Taxotere – was expected in mid-November and now seems like January. While we believe the Drug Company stands to benefit in FY2011 from attractive generic
launches (i.e Aricept, Concerta, and Femara) and moderated generic price deflation, we believe the specialty business could drive upside to numbers from launches of generic Gemzar and Taxotere, along with the residual impact from Eloxatin. By our estimates, company guidance of $0.25+ could prove light – we estimate >$0.30 on what we see as conservative assumptions."

Shares of ABC are off 2 cents in early Friday trade to $32.66, a loss of 0.06%.