Cardinal Health (CAH – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Stephen Baxter from Wells Fargo maintained a Buy rating on the stock and has a $179.00 price target.
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Stephen Baxter has given his Buy rating due to a combination of factors including Cardinal Health’s increased guidance for fiscal year 2025 and its establishment of a favorable outlook for 2026. The company has raised its earnings per share (EPS) guidance for 2025 and set a new target for 2026 that exceeds consensus estimates, indicating strong expected growth. Additionally, Cardinal Health has extended its 12-14% adjusted EPS growth target through 2028, suggesting sustained long-term performance.
Furthermore, the company has updated its long-range plans for its Pharma and Specialty segments, showing increased profit expectations. Cardinal Health’s cash flow projections have also been raised, with a significant increase in adjusted free cash flow expectations for 2025 and 2026. The company’s plans to increase its share repurchase program further support the Buy rating, as these actions are likely to enhance shareholder value.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $180.00 price target.
CAH’s price has also changed moderately for the past six months – from $117.460 to $160.520, which is a 36.66% increase.