TD Cowen analyst Charles Rhyee reiterated a Buy rating on Cardinal Health (CAH – Research Report) yesterday and set a price target of $162.00.
Charles Rhyee has given his Buy rating due to a combination of factors that highlight Cardinal Health’s strong growth potential. He believes the market’s focus on tariffs affecting the Global Medical Products and Distribution (GMPD) segment is misplaced, as it only constitutes a small portion of the company’s Adjusted Operating Income (AOI). Instead, Rhyee emphasizes the robust performance and growth prospects of the Pharma segment, which makes up a significant majority of AOI and has shown strong year-over-year growth.
Additionally, the Other segment, which includes businesses like Nuclear and OptiFreight, has demonstrated impressive growth, further supporting the company’s overall positive outlook. Management’s efforts to mitigate tariff impacts and their strategic focus on high-growth areas such as Pharma and Other segments are expected to sustain mid-teens growth. These factors collectively underpin Rhyee’s confidence in Cardinal Health’s ability to deliver strong financial performance, justifying his Buy rating.
Rhyee covers the Healthcare sector, focusing on stocks such as Teladoc, Medpace Holdings, and Charles River Labs. According to TipRanks, Rhyee has an average return of -0.6% and a 44.15% success rate on recommended stocks.
In another report released on April 29, UBS also maintained a Buy rating on the stock with a $160.00 price target.