Analyst Michael Cherny from Leerink Partners maintained a Buy rating on Cardinal Health (CAH – Research Report) and keeping the price target at $156.00.
Michael Cherny has given his Buy rating due to a combination of factors that highlight Cardinal Health’s strong fundamentals and growth prospects. Despite recent stock volatility driven by tariff concerns, Cherny believes the potential risks are overstated when compared to the company’s robust core Pharma portfolio and other mitigating factors.
Cherny points out that while there is a potential EBIT headwind of approximately 2% by FY26 due to tariffs, Cardinal Health has several strategies to counteract this impact. These include the ability to pass on costs, reduce expenses, on-shore manufacturing, and leverage alternative sourcing. Additionally, potential tariff exemptions and generic inflation could further offset risks. Cherny emphasizes that the company’s growth is primarily driven by its Pharma business, which presents higher growth opportunities, thus supporting a favorable risk/reward profile and justifying the Buy rating.
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