Buy Recommendation for Cardinal Health Driven by Strong Financial Outlook and Strategic Initiatives

Evercore ISI analyst Elizabeth Anderson CFA has maintained their bullish stance on CAH stock, giving a Buy rating yesterday.

Elizabeth Anderson CFA’s rating is based on Cardinal Health’s robust financial outlook and strategic initiatives. The company has maintained its long-term guidance with an expected EPS growth of 12-14% and consistent annual AOI growth in both its Pharma and Other segments. The strategic focus on specialty and nuclear sectors, along with a strong free cash flow deployment, positions Cardinal Health for continued growth.
Furthermore, the company has demonstrated strong execution capabilities, contributing to its positive financial projections. The MSO platform’s contribution to higher-margin revenue and the biopharma solutions growth at a CAGR of approximately 20% are significant growth drivers. These factors, combined with a baseline share repurchase plan of $750 million per year, support the Buy rating with a target price of $180.

In another report released yesterday, Morgan Stanley also reiterated a Buy rating on the stock with a $166.00 price target.