Evercore ISI lifts Cardinal Health stock price target to $175

Published 02/06/2025, 11:20
Evercore ISI lifts Cardinal Health stock price target to $175

On Monday, Evercore ISI analysts raised the price target for Cardinal Health (NYSE:CAH) stock to $175 from $165, while maintaining an Outperform rating. The decision comes ahead of Cardinal Health’s Investor Day, scheduled for June 12, where the company is expected to provide updates on its growth strategy. The stock, currently trading near its 52-week high of $156.44, has delivered an impressive 58% return over the past year.

The analysts noted that Cardinal Health is likely to maintain its earnings per share (EPS) compound annual growth rate (CAGR) of 12-14%. They also anticipate that the company may increase its Pharma segment’s annual operating income CAGR, while keeping other segments steady due to the unpredictable tariff environment. With a P/E ratio of 24.2 relative to its growth rate and 43 consecutive years of dividend payments, Cardinal Health demonstrates strong financial fundamentals. InvestingPro analysis indicates the stock may still have room to grow, with additional insights available in the comprehensive Pro Research Report.

Cardinal Health is expected to announce its fiscal year 2026 EPS guidance of approximately $9.05 to $9.25, reflecting a 12-14% growth from the fiscal year 2025 midpoint guidance. This projection is expected to be favorable when compared to the current consensus estimate of $9.09.

The analysts’ comments suggest confidence in Cardinal Health’s ability to achieve its growth targets, despite external challenges such as tariff volatility. The upcoming Investor Day will likely provide more clarity on the company’s long-term plans.

In other recent news, Cardinal Health has reported its first-quarter 2025 earnings, surpassing expectations with earnings per share (EPS) of $2.35 against a forecast of $2.17. Despite slightly missing revenue forecasts, the company raised its full-year EPS guidance, signaling confidence in future growth. Citi analyst Daniel Grosslight raised the price target for Cardinal Health to $157 from $140, maintaining a Neutral rating, following the company’s strong performance in various segments. Cardinal Health’s pharmaceutical segment saw a 16 basis point year-over-year expansion in margins, driven by growth in high-margin Biopharma and Managed Services Organization solutions. The company has also increased its quarterly dividend to $0.5107 per share, reflecting its commitment to delivering shareholder value. Additionally, Cardinal Health has raised its EPS guidance by $0.18 at the midpoint, anticipating further growth in its Pharma and Other segments. Looking ahead to Fiscal Year 2026, the company expects double-digit EPS growth, with the Pharma and Other segments as primary contributors.

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