Cardinal Health (CAH – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Brian Tanquilut from Jefferies upgraded the rating on the stock to a Buy and gave it a $150.00 price target.
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Brian Tanquilut has given his Buy rating due to a combination of factors that highlight Cardinal Health’s potential for growth under new management. The company has demonstrated a strong earnings record recently, with minimal misses, showcasing a significant improvement compared to its past performance. This track record suggests that the new management team is effectively executing its strategy, which is expected to foster long-term growth.
Another reason for the Buy rating is the anticipated positive impact of strategic acquisitions, such as the ADS acquisition, which is expected to contribute to earnings growth but is not yet factored into existing guidance. Additionally, Tanquilut believes that the upcoming update to Cardinal Health’s long-range plans could reveal a 10-14% earnings per share growth target. This outlook, alongside lower exposure to major political and healthcare funding risks compared to its peers, makes the stock an attractive investment, with the potential for the stock trading closer to the S&P 500 price-to-earnings growth ratio, suggesting further upside.
Tanquilut covers the Healthcare sector, focusing on stocks such as Option Care Health, Cardinal Health, and Radnet. According to TipRanks, Tanquilut has an average return of 3.0% and a 49.89% success rate on recommended stocks.
In another report released on February 3, Argus Research also maintained a Buy rating on the stock with a $148.00 price target.