Citi has upped its price target for Cardinal Health (CAH, Financial) from $140 to $157, maintaining a Neutral stance on the stock. This decision follows the company's impressive performance in the third quarter. Although the Pharma division's revenue fell slightly short of expectations, the seamless integration of a $10 billion Publix/client expansion has been a positive development.
The company's Pharma margins saw an increase of 16 basis points, attributed to the ongoing growth in higher-margin Biopharma/MSO solutions and the stability of generic products. This resulted in a 14% rise in adjusted operating income for the Pharma segment, according to Citi's analysis.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Cardinal Health Inc (CAH, Financial) is $146.44 with a high estimate of $161.00 and a low estimate of $119.12. The average target implies an upside of 0.63% from the current price of $145.52. More detailed estimate data can be found on the Cardinal Health Inc (CAH) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Cardinal Health Inc's (CAH, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cardinal Health Inc (CAH, Financial) in one year is $114.97, suggesting a downside of 20.99% from the current price of $145.52. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cardinal Health Inc (CAH) Summary page.
