UPDATE: Goldman Sachs Downgrades Cardinal Health (CAH) to Neutral

September 16, 2016 6:38 AM EDT
Get Alerts CAH Hot Sheet
Price: $75.03 -0.69%

Rating Summary:
    8 Buy, 15 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - September 16, 2016 8:33 AM EDT)

Goldman Sachs downgraded Cardinal Health (NYSE: CAH) from Conviction Buy to Neutral with a price target of $83 (prior $90). Analyst Robert P. Jones sees moderating brand pricing.

Jones explained, "We remove CAH from the Americas Conviction List and downgrade it to Neutral (from Buy) as softer brand price inflation presents an additional risk to earnings in a year when EPS growth was already below CAH’s long-term (3-year) target of 10-15%. Further, a more permanent change in brand pricing could present a structural headwind to the current earnings growth model. In addition, the upside drivers of EPS that we identified in our December 2015 upgrade have not been as accretive as expected (Cordis, Medical), with CAH recently lowering guidance for Cordis accretion in FY17."

For an analyst ratings summary and ratings history on Cardinal Health click here. For more ratings news on Cardinal Health click here.

Shares of Cardinal Health closed at $76.60 yesterday.

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