Barclays Maintains an 'Overweight' on Cardinal Health (CAH); 10-K Review; Slightly Lifting 2011 Estimates

Barclays maintains an 'Overweight' on Cardinal Health (NYSE: CAH) price target of $51.00.

Barclays analyst says, "In conjunction with our Barclays Capital 2011 Healthcare Distribution & Technology Fall Update, this morning we are lifting our FY12 and FY13 EPS estimates for Cardinal Health. Our assumptions behind this move - a combination of some expansion in our share repurchase expectations, more moderate economic gains that could benefit the company's commodity cost expectations (partially offset by lower medical supply volume), and slightly lower interest expenses and LIFO charge assumptions combine to provide another $0.02 to this year and next." (Raises FY11 EPS estimate from $3.16 to $3.18)

"In addition, comments from the company's recently filed 10-K highlight the
meaningful contribution in gross profits provided in FY11 by its generic business, as well as its key customer contributions, but does highlight some disruption in the importation of some of its procedure kits from Mexico."

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 $41.22 yesterday.

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