The Chesterbrook, PA-based company is engaged in pharmaceutical sourcing and distribution services.
"Concern over waning generic inflation has weighed heavily on ABC's shares, but we note specialty pharmacy and investments in new services are returning more. Profits from new businesses have quintupled since fiscal year 2011 and will likely move higher," the firm said in an analyst note.
Invested capital management remains a strong suit for the company, Credit Suisse noted.
The company limits its growth in its capital base by acquiring high return on invested capital (ROIC) businesses and through "diligent working capital management," the firm said.
Shares of AmerisourceBergen closed higher by 0.89% to $87.07 on Wednesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
This is driven by several positive factors, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ABC