UBS Maintains a 'Buy' on Cardinal Health (CAH); Management Keeps Bar Low; Can’t Ignore Trends
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Price: $229.51 +0.46%
Rating Summary:
18 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Buy' on Cardinal Health (NYSE: CAH), raises PT from $47 to $51.
UBS analyst says, "We understand that Cardinal mgmt wants to keep the bar low on expectations around the generic wave for FY12 (ending in June), especially on the heels of what is turning out to be a successful FY11 for generics for the company. Further, it is worth noting that we believe the strongest quarter for generic launches in calendar 2012 will be 3Q, which actually falls into Cardinal’s FY13. Nevertheless, the prospects for CAH to cash in on generic Lipitor/Zyprexa/Lexapro/Seroquel/Viagra in its FY12 are simply too great too ignore (~$20 bil sales alone from these drugs)."
"In light of the breakdown of the generic pipeline by CAH’s fiscal year, our FY12 EPS estimate of $3.13 represents 16% growth from the $2.69 we are projecting for FY11, and remains above $2.98 consensus for FY12. We are projecting another 15%+ growth in FY13 to $3.61..."
For more ratings news on Cardinal Health click here and for the rating history of Cardinal Health click here.
Shares of Cardinal Health closed at $43.49 yesterday.
UBS analyst says, "We understand that Cardinal mgmt wants to keep the bar low on expectations around the generic wave for FY12 (ending in June), especially on the heels of what is turning out to be a successful FY11 for generics for the company. Further, it is worth noting that we believe the strongest quarter for generic launches in calendar 2012 will be 3Q, which actually falls into Cardinal’s FY13. Nevertheless, the prospects for CAH to cash in on generic Lipitor/Zyprexa/Lexapro/Seroquel/Viagra in its FY12 are simply too great too ignore (~$20 bil sales alone from these drugs)."
"In light of the breakdown of the generic pipeline by CAH’s fiscal year, our FY12 EPS estimate of $3.13 represents 16% growth from the $2.69 we are projecting for FY11, and remains above $2.98 consensus for FY12. We are projecting another 15%+ growth in FY13 to $3.61..."
For more ratings news on Cardinal Health click here and for the rating history of Cardinal Health click here.
Shares of Cardinal Health closed at $43.49 yesterday.
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