Cardinal, McKesson, Zeta, Centene, ABAT Trending With Analysts

Analysts are intrested in these 5 stocks: ( (CAH) ), ( (MCK) ), ( (ZETA) ), ( (CNC) ) and ( (ABAT) ). Here is a breakdown of their recent ratings and the rationale behind them.

Cardinal Health is catching analysts’ attention as a transformed healthcare services player rather than just a drug distributor. Max Smock initiated coverage with a Buy, highlighting its massive distribution scale, growing specialty-drug exposure, and a suite of nondistribution services that deepen relationships and support higher-margin growth.

The firm’s strong balance sheet and free cash flow underpin steady share buybacks and projected low- to mid-teens annual EPS growth. Trading at about 18x 2026 earnings, Cardinal commands a premium to its own history and Cencora, which Smock argues is justified by its shift into embedded tech and higher-growth service businesses.

McKesson is likewise being framed as more than a logistics giant, with Smock also initiating coverage at Buy and an Outperform rating. As North America’s largest pharmaceutical distributor, it stands to benefit from aging demographics, new drug launches, and rapid adoption of specialty medicines that fuel specialty-led growth.

Beyond distribution, McKesson’s expanding portfolio of services and technology tools is creating data network effects and higher switching costs, reinforcing its moat. The stock trades at roughly 18.6x 2026 EPS, a premium to history but in line with Cardinal, and Smock expects earnings to grow in the low- to mid-teens with shares tracking that pace even if valuation multiples stay flat.

Zeta Global is emerging as a potential AI-driven growth story, prompting analyst Jackson Ader to upgrade the stock to Buy with a $22 target. He argues Zeta could be early in a shift to a more recurring, usage-based model, powered by its Athena AI engine and a proprietary data moat that may boost marketing returns and client stickiness.

Recurring revenue is projected to reach about 60% in 2025, helped by customers committing more spend and adopting new AI “agentic” products that lift ARPU. While gross margins and free cash flow, excluding stock-based compensation, lag ideal levels, Zeta has recently turned GAAP-profitable, and Ader sees ample upside optionality if AI usage scales.

Centene is at the center of a rare double dose of optimism, with Sarah James and Kevin Fischbeck both upgrading the insurer to Buy and setting $60 price targets. James sees a clearer path to margin recovery across Marketplace, Medicaid, Medicare Advantage, and Part D, arguing that current valuation offers over 90% upside if margins normalize by 2028.

Fischbeck calls this a double upgrade from Underperform, contending Medicaid margins likely bottom in 2026 and then recover as state pricing catches up to higher acuity and trend. He estimates Medicaid alone is a major drag on current EPS but also the key to unlocking far higher earnings power by 2029, even as he notes short-term risks around enrollment and exchanges.

American Battery Technology is being pitched as a speculative but strategic play on the U.S. battery supply chain, with Tate Sullivan initiating coverage at Buy and a $6 target. ABAT operates a Nevada recycling facility and holds a large lithium resource, aiming to supply battery-grade metals domestically at a time when less than 1% of global battery materials are produced in the U.S.

Sullivan forecasts rapid revenue growth through 2028 on surging EV and storage demand, though he expects continued EBITDA losses until around 2030. With solid cash, no debt, a remaining ATM facility, and potential government and export-credit support, the analyst argues ABAT’s vertically integrated recycling, mining, and refining model justifies a premium valuation despite execution and funding risks.