Bank of America Securities analyst Allen Lutz has reiterated their bullish stance on CAH stock, giving a Buy rating today.
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Allen Lutz has given his Buy rating due to a combination of factors that highlight Cardinal Health’s strong potential for growth. Despite a mixed fourth-quarter report, the company’s Pharma EBIT showed resilience, with the underlying performance exceeding expectations when accounting for minor expense impacts. This indicates sustained operational momentum, which is expected to continue into FY26, driven by robust utilization and new customer growth. Additionally, the company’s strategic focus on specialty and inorganic contributions from MSO platforms is anticipated to bolster EBIT growth.
Furthermore, the Global Medical Products and Distribution (GMPD) segment is making strides in its recovery through cost optimization and the expansion of CAH branded products. While there may be some volatility in the GMPD segment, the strength in the Pharma and Other segments is expected to counterbalance potential challenges. Lutz remains optimistic about Cardinal Health’s long-term goals of achieving 12-14% adjusted EPS growth and believes the company is well-positioned to outperform its peers in organic Pharma EBIT growth. The Buy rating is reaffirmed with a price objective of $180, reflecting confidence in the company’s future performance.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $190.00 price target.