Cardinal Health price target lowered to $115 from $120 at Argus

Argus lowered the firm’s price target on Cardinal Health to $115 from $120 but keeps a Buy rating on the shares and contends that the recent weakness in the stock provides a buying opportunity. The company has recovered from pandemic-related effects, but the higher-margin Medical segment has been facing pressure from the long-term nature of its distribution contracts, which have prevented the company from passing on higher costs to customers, the analyst tells investors in a research note. Argus adds however that Cardinal’s has also made some “impressive progress”, noting that the “strong” cash flow from its generic program has given the company a sizeable cash balance that it has used to repurchase $750M of stock in the first half of the year.