Analyst Erin Wright from Morgan Stanley maintained a Buy rating on Cardinal Health and keeping the price target at $190.00.
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Erin Wright has given his Buy rating due to a combination of factors that highlight Cardinal Health’s strategic positioning and financial performance. The company’s fiscal year 2026 earnings per share guidance has been raised, driven by a change in accounting for The Specialty Alliance and a slight increase in the Pharma AOI target. This adjustment reflects a positive outlook on Cardinal Health’s ability to enhance its operational efficiency and profitability.
Additionally, the acquisition of Solaris Health, which expands Cardinal Health’s Specialty Alliance, is expected to be accretive to earnings shortly after the deal closes. This move underscores the company’s commitment to a multi-specialty strategy, further strengthening its market position. Despite a slight miss in the fourth quarter Pharma AOI, the overall guidance raise and strategic acquisitions contribute to a positive long-term growth trajectory, justifying the Buy rating.
Wright covers the Healthcare sector, focusing on stocks such as Centene, Humana, and Elanco Animal Health. According to TipRanks, Wright has an average return of 12.3% and a 62.74% success rate on recommended stocks.
In another report released yesterday, Leerink Partners also maintained a Buy rating on the stock with a $186.00 price target.