UPDATE: Morgan Stanley Upgrades Cardinal Health (CAH) to Overweight

(Updated - April 12, 2022 5:02 AM EDT)

Morgan Stanley analyst Ricky Goldwasser upgraded Cardinal Health (NYSE: CAH) from Equalweight to Overweight with a price target of $74.00 (from $54.00).

The analyst comments "It’s time to take a fresh look at CAH – upgrade to Overweight. We see long term value creation opportunities that could help drive earnings acceleration and multiple re-rating over the next 12to 24 months including a benefit from reduced opioid litigation expense, stock buybacks and benefit from biosimilars. While we acknowledge lingering near term headwinds to the medical segment and are lowering our FY22and FY23 EPS to reflect inflationary pressure and are a touch below the Street (Exhibit 8),at current levels, we think CAH offers the best risk/reward skew vs distribution peers at 2:1,and we recommend being opportunistic around any volatility through earnings."

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 $61.38 yesterday.

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