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Research Alert: CFRA Maintains Buy Opinion On Shares Of Cardinal Health
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Cardinal Health
May 26, 2025 1:10 AM

09:25 AM EDT, 05/05/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month price target by $26 to $172, reflecting a 19x multiple of our FY 26 (Jun.) EPS estimate (up $0.30 to $9.05; FY 25 estimate up $0.26 to $8.13), a discount to CAH's largest peer McKesson (MCK) but closer to competitor Cencora (COR) than our previous view. This is to account for indications of strong margin and EPS growth trends, despite the OptumRx contract expiration last year, within a favorable environment for pharma distributors. CAH recently raised guidance during the Q3 FY 25 earnings report to account for accretion from recent acquisitions. As with peers, we think the pharma component of CAH's business model is largely insulated from tariffs, while we think CAH's pricing power and ability to pass through costs will help mitigate tariff impacts on the medical products business. Shares yield 1.4%, and we anticipate near 11% EPS growth, on a compound annual basis, from FY 25 to FY 28, which we think will approximate or potentially exceed peer COR's growth over this span.

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