Cardinal Health price target raised to $190 from $170 at Jefferies

Published 17/06/2025, 11:14
Cardinal Health price target raised to $190 from $170 at Jefferies

Jefferies raised its price target on Cardinal Health (NYSE:CAH) to $190.00 from $170.00 on Monday, while maintaining a Buy rating on the healthcare services company’s stock. The company’s stock, currently trading at $162.41, has delivered impressive returns with a 64% gain over the past year and is trading near its 52-week high of $162.94.

The research firm cited greater conviction in its positive outlook following Cardinal Health’s investor day, noting both defensive characteristics and fundamental growth drivers that could sustain positive stock momentum over the next few years.

Jefferies increased its earnings per share estimates for Cardinal Health from fiscal year 2025 through fiscal year 2027, with the new price target representing approximately 21.5 times the calendar year 2025 estimated price-to-earnings ratio.

The firm acknowledged that investors have gravitated toward pharmaceutical distributors like Cardinal Health in recent months due to their defensive nature in uncertain market conditions.

Despite Cardinal Health shares continuing to rise, Jefferies believes the current valuation "remains reasonable" with potential upside warranted by the company’s "sustained strong outlook."

In other recent news, Cardinal Health has raised its full-year adjusted earnings per share (EPS) forecast, now expecting between $8.15 and $8.20, surpassing previous guidance and analyst expectations. The company also provided preliminary guidance for fiscal year 2026, projecting an adjusted EPS of $9.10 to $9.30, indicating a 13% growth at the midpoint. UBS has raised its price target for Cardinal Health to $185, maintaining a Buy rating, while BofA Securities increased its target to $170, also reiterating a Buy rating. Both firms expect positive developments from the company’s upcoming Investor Day.

Cardinal Health has also increased its long-term profit growth targets for its Pharmaceutical (TADAWUL:2070) and Specialty Solutions segment to 5% to 7% normalized growth. The company plans to generate at least $10 billion in total adjusted free cash flow over the next three years and has increased its baseline share repurchase plans to at least $750 million annually. Additionally, Cardinal Health announced strategic initiatives, including the launch of The Specialty Alliance multi-specialty MSO platform and investments in Biopharma Solutions. The company also plans to invest over $150 million in its Nuclear and Precision Health Solutions business to support theranostics and PET product pipeline development.

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