Barclays_U_S_Healthcare_Technology_Distribution_Making_a_List_and_Checking_it_Twice_Initiating_Coverage_on_HC_Technology_Distribution

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companiescovered in its research reports. As a result, investors should be aware that the firm may have aconflict of interest that could affect the objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision.Please see analyst certifications and important disclosures beginning on page 118.U.S. Healthcare Technology & DistributionMaking a List and Checking itTwice: Initiating Coverage on HCTechnology & DistributionWe initiate coverage on the U.S. Healthcare Tech &Distribution industry with a Neutral industry view. Ourcoverage includes 18 companies (16 new and 2 assumptionsof coverage). Lead coverage responsibilities in this industryare split between Glen Santangelo and Peter Warendorf.Glen Santangelo will provide lead coverage on: MCK, COR, CAH, ALGN, HSIC, NVST, XRAY,DOCS, HIMS, WAY, PHR, GDRX, and DH.Peter Warendorf will provide lead coverage on: HQY, PGNY, LFST, TALK, and TDOC.Our ratings: Overweight: MCK, COR, CAH, HSIC, NVST, DOCS, WAY, PHR, HIMS, HQY, LFST, PGNY;Equal Weight: ALGN, TDOC, TALK, Underweight: XRAY, GDRX, DH. With this report, primary coverage of Definitive Health (DH) is transferred to Glen Santangelo, whoalso  assumes lead coverage of Waystar (WAY).Industry View – Neutral: The Technology & Distribution industry has always presented achallenge in having a “sector view” as it is broadly comprised of smaller sub-segments. We seedifferentiated performance across these sub-sectors, with tighter correlations within thedifferent sub-sectors. Within the broader sector, we are most bullish on the drug distributorsand have a more mixed view on our Dental and HCIT coverage. See below for some high-levelthoughts on each of the three sub-sectors. (Best ideas: CAH, COR, MCK and DOCS).  Equity Research8 December 2025SIGNATUREInitiating CoverageU.S. Healthcare Technology & DistributionNEUTRALfrom Not RatedU.S. Healthcare Technology &DistributionGlen Santangelo+1 212 526 7364glen.santangelo@barclays.comBCI, USPeter Warendorf+1 212 526 3891peter.warendorf@barclays.comBCI, USCompleted: 08-Dec-25, 20:42 GMT Released: 08-Dec-25, 21:01 GMTRestricted - ExternalFIGURE 1. U.S. Healthcare Technology & Distribution Coverage SummaryCompany NameTickerMarket CapRatingPTSub-SectorBarclays AnalystMcKessonMCK$ 100.0OW$ 960DistributionGlen SantangeloCencoraCOR$ 65.3OW$ 400DistributionGlen SantangeloCardinal HealthCAH$ 47.2OW$ 243DistributionGlen SantangeloAlign TechnologyALGN$ 11.2EW$ 170DentalGlen SantangeloHenry ScheinHSIC$ 8.6OW$ 86DentalGlen SantangeloEnvistaNVST$ 3.3OW$ 24DentalGlen SantangeloDentsply SironaXRAY$ 2.2UW$ 12DentalGlen SantangeloDoximityDOCS$ 9.7OW$ 63HCITGlen SantangeloHims & Hers HealthHIMS$ 9.1OW$ 48HCITGlen SantangeloWaystarWAY$ 6.7OW$ 42HCITGlen SantangeloPhreesiaPHR$ 1.2OW$ 26HCITGlen SantangeloGoodRxGDRX$ 1.0UW$ 3HCITGlen SantangeloDefinitive HealthDH$ 0.4UW$ 2.75HCITGlen SantangeloComp