Cardinal Health price target raised to $112 from $101 at JPMorgan

JPMorgan raised the firm’s price target on Cardinal Health to $112 from $101 and keeps a Neutral rating on the shares. The analyst reassessed the firm’s healthcare services coverage universe post the Q3 reports. The firm thinks the 2024 setup for managed care is “more varied and complicated” post Q3. Medicaid looks “more ownable” but Q4 will be a key confirmatory data point, Medicare Advantage utilization concerns are back in focus, and there is speculation of one last managed care mega merger, the analyst tells investors in a research note. All in, JPMorgan continues to prefer diversified managed care operators at this stage from a “purely fundamental perspective.” On distributors, the firm says volumes remained strong as GLP-1 volumes and lower generic conversions and continued growth in specialty benefitted revenue growth, and continue to lead to a positive set up heading into the end of 2023.