Cardinal Health (CAH) Sinking Again as Analysts Respond to Yesterday's Guidance

Today, shares of Cardinal Health (NYSE: CAH) are tumbling for the second day in a row following an investor meeting yesterday which did not go so well. The stock fell more than 10% yesterday as the health-care company issued guidance that was below analyst expectations. Today, traders are once again selling the stock as 11 different research firms put out notes on Cardinal issuing either a downgrade or price target reduction. Shares of Cardinal most recently traded at $30.07, down 7.8% from yesterday's close.

Cardinal announced yesterday that it expects to spin-off at least 80% of CareFusion to its shareholders, resulting in about $152 million of spinoff-related charges. The company also said it expects standalone adj-EPS growth past FY10 to be in the high single digits range, with total debt post-spinoff of about $2.1 billion and cash of $1 billion. Cardinal also sees post-FY10 revenue growth in the mid-single digit range with operating earnings growth of 11-15%.

On the analyst front:

• downgraded at Robert W. Baird from Outperform to Neutral. The firm also lowered its price target from $44 to $33
  
• downgraded at Raymond James from Market Perform to Underperform
  
• price target cut from $38 to $33 at Citi, which maintains a Hold rating
  
• PT lowered from $44 to $37 at BofA, which has the stock at Buy
  
• PT cut from $48 to $40 at Oppenheimer, Outperform rated
  
• Barclays cut its target from $46 to $36, while maintaining an Overweight rating
  
• target reduced from $46 to $40 at JPMorgan, which also has an Overweight rating
  
• Credit Suisse moved its price target from $48 to $39, keeping the stock at Outperform
  
• PT cut from $36 to $32 at Goldman Sachs, which has a Neutral rating
  
• Deutsche Bank cut its target from $42 to $35.50, while keeping shares at Buy

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