Cardinal Health price target lowered to $186 from $188 at Leerink

Leerink analyst Michael Cherny lowered the firm’s price target on Cardinal Health (CAH) to $186 from $188 and keeps an Outperform rating on the shares. The firm thinks that the current weakness in Cardinal Health shares is more than warranted but believes the totality of this quarter’s results is not getting enough credit. Expectations were high after a very robust Investor Day in June, so seeing Pharma growth below consensus feels like a bit of a letdown, Leerink adds. But taking a step back and taking a deep breath, the firm says it is important to note that the company raised FY26 operational guidance just two months after the investor day, another sign of enterprise strength. If Cardinal Health, and peers, are going to continue to churn out double-digit AOI growth in their core segments, Leerink does not view the multiples as underwriting that level of stability. Overall, the firm remains bullish and sees the pullback as overdone.