Summary

• Cencora gets its prior buy rating from 2025 reaffirmed, driven by several strong fundamentals, despite a recent price retreat.
• The healthcare distributor has a global brand footprint, a key role in serving specific clinical needs, and profitability, despite thin margins.
• The dividend case is compelling, with proven 10-year growth across many market cycles and a low payout ratio.
• Fitch gave this company an "A-level" credit rating.
• The sector risk of regulations and pricing pressure has also been discussed.

A Healthcare Supplier Eyeing the Competition

Seeing is believing, and recently I saw a late-March piece in Reuters on healthcare distributor Cencora (COR) buying out the retina-care business of EyeSouth for $1.1B, so I thought

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