Leerink Partners analyst Michael Cherny has reiterated their bullish stance on CAH stock, giving a Buy rating on May 2.
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Michael Cherny has given his Buy rating due to a combination of factors that highlight the promising outlook for Cardinal Health under its new leadership. The company has demonstrated significant growth potential and stable performance, with recent results reinforcing this positive trajectory. The leadership team’s efforts to address uncertainties, such as the tariff issue affecting GMPD, are expected to further stabilize the company’s growth prospects.
Additionally, the strong performance in the pharmaceutical segment, marked by a 14% year-over-year increase in segment EBIT, underscores the company’s robust growth. New customer acquisitions and the integration of recent acquisitions like GI Alliance and ION have contributed to this momentum. The growth in other segments, such as Nuclear and OptiFreight, further supports the company’s positive outlook, making the preliminary FY26 EPS growth guidance achievable. These factors collectively justify the increased price target and the Buy rating.
According to TipRanks, Cherny is a 4-star analyst with an average return of 3.8% and a 54.42% success rate. Cherny covers the Healthcare sector, focusing on stocks such as CVS Health, Walgreens Boots Alliance, and Hims & Hers Health.
In another report released on May 2, Robert W. Baird also maintained a Buy rating on the stock with a $170.00 price target.