Cardinal Health (CAH) PT Raised to $130 at Citi

Citi analyst Daniel Grosslight raised the price target on Cardinal Health (NYSE: CAH) to $130.00 (from $129.00) while maintaining a Neutral rating.

The analyst comments "Continued broad-based strength in Pharma offset weak GMPD results (largely due to another one-time item) leading to a beat-and-raise quarter. The Pharma segment remains resilient, growing topline ~17% y/y (ex-Optum) and AOI ~7% y/y (beating our/cons. estimates by 3%/7%). On the strength of the beat (and GIA/ION acquisitions), CAH raised Pharma segment guidance from 4%-6% to 10-12%. Whis does assume a slowdown in organic Pharma growth from ~9% in 1H25 to ~5% in 2H25 (our estimates), largely due to utilization normalization. GMPD came in $10M below our expectations (inc. a $15M write-off), and CAH again lowered guidance by $17.5M (to $130-$150M). That said, we are encouraged that CAH has been able to manage through a volatile macro environment and much of this year’s weakness has been due to one-off events. The Other segment performed largely as expected, growing Revenue/AOI 13%/11% y/y."

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