Reports that the drug distributors, AmerisourceBergen (ABC), Cardinal Health (CAH) and McKesson (MCK) have proposed an $18B settlement payable over 18 years to broadly settle outstanding lawsuits resulting from the companies' distribution of opioids should eliminate a longstanding overhang on the group, if finalized, Jefferies analyst Brian Tanquilut tells investors in a research note. With investors generally expecting a settlement of $15B-$25B, payable over a five-to-ten year time frame, the reported settlement proposal should be viewed as a positive, says the analyst. Tanquilut says the $18B payable over 18 years would be better than investors' current expectations. As sector fundamentals are improving, "elimination of long-standing overhang should make the group ownable again," he contends. The analyst prefers Buy-rated McKesson over Hold-rated AmerisourceBergen and Cardinal Health.