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On Tuesday, TD Cowen analysts reiterated their Buy rating and maintained a $162.00 price target for Cardinal Health (NYSE: NYSE:CAH) stock, which has shown impressive momentum with a 58.2% return over the past year and is currently trading near its 52-week high of $157.82. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value metrics. The reaffirmation comes ahead of Cardinal Health’s Investor Day scheduled for Thursday.
The analysts indicated potential developments during the upcoming Investor Day, including a possible increase in the company’s long-term pharmaceutical profit guidance to a range of 5% to 7%, up from the previous 4% to 6%. Additionally, Cardinal Health is expected to introduce preliminary fiscal year 2026 adjusted earnings per share (EPS) guidance ranging from $9.15 to $9.45, compared to the consensus estimate of $9.14. With a strong financial health score of 3.25 (rated as GREAT by InvestingPro’s comprehensive analysis), the company appears well-positioned to achieve these targets.
TD Cowen analysts also anticipate that Cardinal Health will address its Other segment and businesses, which they estimate will contribute 18% of adjusted operating income in fiscal year 2026. The company is also expected to update its expectations regarding the impact of GMPD tariffs.
During the Investor Day, Cardinal Health is likely to reaffirm its current fiscal year 2025 guidance, which is presently set at $8.05 to $8.15, and provide preliminary guidance for fiscal year 2026. This guidance is expected to cover adjusted EPS, segment revenue and profit growth, as well as free cash flow and capital expenditure projections.
In other recent news, Cardinal Health has been in the spotlight with several significant developments. The company has entered into a distribution agreement with Citius Oncology to support the U.S. launch of LYMPHIR™, an FDA-approved immunotherapy. This partnership aims to enhance the availability of the treatment for relapsed or refractory cutaneous T-cell lymphoma, with Cardinal Health serving as an authorized distributor. In the financial realm, Wells Fargo (NYSE:WFC) upgraded Cardinal Health’s stock to Overweight from Equal Weight, raising the price target to $179, citing improved valuation and strong industry conditions.
Similarly, Evercore ISI increased the company’s price target to $175, maintaining an Outperform rating, and highlighted expectations for a consistent earnings per share growth rate. BofA Securities also raised its price target for Cardinal Health to $170, reiterating a Buy rating, ahead of the company’s Investor Day. Analysts are optimistic about Cardinal Health’s potential for sustainable earnings growth, driven by favorable industry trends and strategic investments. These developments underscore Cardinal Health’s active role in both pharmaceutical distribution and financial performance improvement.
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