Cardinal Health (CAH) PT Lowered to $240 at BofA Securities

BofA Securities analyst Michael Cherny lowered the price target on Cardinal Health (NYSE: CAH) to $240.00 (from $260.00) while maintaining a Buy rating.

The analyst comments "Cardinal Health reported a mixed-to-positive FY3Q and raised FY26 EPS guidance, driven by below the line items and continued strength in the Pharma/Other segments (see our first take here). Importantly, $0.13 of the $0.50 midpoint adj. EPS increase is driven by operational strength in Pharma/Other which reinforces our confidence in sustained specialty momentum and core Pharma utilization heading into FY27. The guidance raise should also alleviate investor concerns around a potential moderation in industry growth. The Other segment also saw strength in the quarter and we believe positive secular trends across at-Home, OptiFreight, and Nuclear will remain robust through FY27. Meanwhile, while the GMPD segment saw a $25MM profit decrease in the quarter due to tariffs, a potential net $100MM tariff refund (pending the finalization of the Supreme Court ruling) could offset potential pressure related to commodity price volatility. Overall, we believe durable growth in core Pharma/Other should outweigh near-term weakness in GMPD. Additionally, the core Pharma guidance raise increases our confidence in CAH’s ability to deliver its long-term 12-14% adj. EPS targets. We reiterate our Buy rating and reduce our PO from $260 to $240, now based on 21x CY26E EPS (23.5x prior)."

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