Cardinal Health, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Allen Lutz from Bank of America Securities maintained a Buy rating on the stock and has a $180.00 price target.
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Allen Lutz has given his Buy rating due to a combination of factors that highlight Cardinal Health’s strategic positioning and growth potential. The company has demonstrated strong execution in its core pharmaceutical business, supported by a robust demand environment and strategic investments in higher-margin areas like specialty pharmaceuticals. This focus has resulted in a significant growth trajectory, with specialty areas such as autoimmune and urology showing promising expansion opportunities.
Additionally, Cardinal Health is well-prepared to navigate evolving industry dynamics, including drug pricing policies and the anticipated increase in generic drug availability. The company’s fee-for-service contract structure positions it to effectively manage these challenges, while its disciplined capital deployment strategy ensures continued investment in growth and shareholder returns. Overall, the company’s strategic initiatives and operational efficiencies support a confident outlook for achieving long-term EPS growth, justifying the Buy rating and a price objective of $180.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CAH in relation to earlier this year.