Barclays starts healthcare technology, distribution with Neutral view

Barclays initiated coverage last night of 26 names in the healthcare technology and distribution sector with a Neutral industry view. Following a period of outsized correlation across the group, 2024 will likely feature increased dispersion, says the firm, which takes a selective stance in its stock picking as a result. Independent of the interest rate environment, the backdrop favors quality across both value and growth assets, the analyst tells investors in a research note. The firm’s core investment framework prioritizes names with enduring business models that feature established customers, well defined total addressable markets, and core pockets of spend. It also likes standalone cash sustainability and dependable, “sleep-easy” stories. Barclays’ Overweight rated named are Cardinal Health (CAH), Cencora (COR), Evolent Health (EVH), GoodRx (GDRX), Health Catalyst (HCAT), HealthEquity (HQY), HealthStream (HSTM), McKesson (MCK), Progyny (PGNY), Phreesia (PHR), R1 RCM (RCM) and Teladoc (TDOC), VEEV. The firm’s Underweight-rated names are LifeStance (LFST), Omnicell (OMCL), Walgreens Boots Alliance (WBA) and WW (WW).