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Valiquette also increased his earnings per share (EPS) estimates for Cardinal Health (NYSE:CAH), raising the fiscal year 2025 forecast from $7.90 to $7.95 and the fiscal year 2026 projection from $8.65 to $8.85. The new price target of $142 is based on applying a 15 times price-to-earnings (P/E) ratio to the revised calendar year 2026 EPS estimate of $9.30, up from the previous estimate of $9.10.Cardinal Health’s recent performance and the positive adjustments in earnings estimates reflect the company’s robust financial health and the potential for continued growth in the pharmaceutical sector. The raised price target by Mizuho (NYSE:MFG) signals a vote of confidence in Cardinal Health’s strategy and market position. For a deeper understanding of Cardinal Health’s valuation and growth prospects, including 12+ additional ProTips and comprehensive financial analysis, visit InvestingPro to access the detailed Pro Research Report. For a deeper understanding of Cardinal Health’s valuation and growth prospects, including 12+ additional ProTips and comprehensive financial analysis, visit InvestingPro to access the detailed Pro Research Report.
Steven Valiquette, an analyst at Mizuho, highlighted three main takeaways from the earnings call. Firstly, the projected 7-9% earnings before interest and taxes (EBIT) growth in the second half of fiscal 2025 for the Pharmaceutical (TADAWUL:2070) & Specialty Solutions segment is seen as attainable. This optimism is supported by the steady demand for brand drugs and specialty products, alongside the benefits from recent mergers and acquisitions. Secondly, the Global Medical (TASE:PMCN) Products Distribution (GMPD) segment experienced softness in the second quarter, which was largely attributed to a one-time receivables write-down. Finally, the impact of a milder flu and illness season was considered a minor negative in an otherwise strong quarter for the company.
Valiquette also increased his earnings per share (EPS) estimates for Cardinal Health, raising the fiscal year 2025 forecast from $7.90 to $7.95 and the fiscal year 2026 projection from $8.65 to $8.85. The new price target of $142 is based on applying a 15 times price-to-earnings (P/E) ratio to the revised calendar year 2026 EPS estimate of $9.30, up from the previous estimate of $9.10.
Cardinal Health’s recent performance and the positive adjustments in earnings estimates reflect the company’s robust financial health and the potential for continued growth in the pharmaceutical sector. The raised price target by Mizuho signals a vote of confidence in Cardinal Health’s strategy and market position.
In other recent news, Cardinal Health has significantly revised its full-year earnings forecast for fiscal year 2025, driven by a robust performance in the Pharmaceutical and Specialty Solutions segment. The company now expects its non-GAAP EPS to reach the higher end of the previously projected range of $7.75 to $7.90, surpassing the consensus estimate of $7.84. In addition to this, Cardinal Health has announced plans to acquire Integrated Oncology Network for $1.1 billion and aims to acquire majority equity interests in The GI Alliance Holdings, LLC, and Advanced Diabetes Supply Group, financed in part by a successful public offering of senior notes which raised $2.9 billion.
The company’s stock rating has been upgraded by several firms, including TD Cowen, which upgraded Cardinal Health’s rating from Hold to Buy and set a new price target of $144. Evercore ISI and BofA Securities also upgraded their ratings, suggesting potential for higher long-term guidance. These upgrades were based on expectations of earnings outperformance due to new customer acquisitions and strong utilization trends.
Lastly, T2 Biosystems (NASDAQ:TTOO) has licensed its sepsis detection technology following a commercial agreement with Cardinal Health, aiming to improve patient outcomes and reduce healthcare costs. These recent developments highlight Cardinal Health’s ongoing growth and strategic initiatives.
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