Bank of America has raised its price target for Cardinal Health (CAH, Financial), boosting it from $150 to $155 while maintaining a Buy rating on the company's shares. This adjustment comes as the firm navigates a landscape where newly imposed tariffs on China and India, coupled with recent adjustments by the current administration to the FDA's policies, are poised to affect the pharmaceutical market.
These changes are anticipated to create conditions conducive to generic drug inflation, a scenario that could prove beneficial for companies like Cardinal Health. An analyst from BofA points out that the combination of these tariffs and policy shifts might serve as a catalyst for increasing generic drug prices, which potentially offers upside opportunities not just for Cardinal Health, but also for industry peers such as McKesson (MCK) and Cencora (COR).
As the situation unfolds, investors and market watchers are encouraged to monitor these developments closely, given their potential impact on the pharmaceutical supply chain and broader market dynamics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Cardinal Health Inc (CAH, Financial) is $143.72 with a high estimate of $161.00 and a low estimate of $119.12. The average target implies an upside of 11.52% from the current price of $128.88. More detailed estimate data can be found on the Cardinal Health Inc (CAH) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Cardinal Health Inc's (CAH, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cardinal Health Inc (CAH, Financial) in one year is $114.16, suggesting a downside of 11.42% from the current price of $128.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cardinal Health Inc (CAH) Summary page.
