Bank of America has increased its price target for McKesson (MCK) to $755, up from the previous target of $665, while maintaining a Buy rating on the stock. This adjustment comes amidst new industry developments that could significantly impact the pharmaceutical distribution sector.
Recent policy shifts, including the implementation of tariffs on China and India, along with changes to the FDA by the current administration, have raised the prospect of increased generic drug costs. According to analysts, these factors could create conditions for generic drug price inflation.
Such a scenario is expected to benefit major distributors including McKesson, as well as Cardinal Health (CAH, Financial) and Cencora (COR), potentially leading to increased profitability for these companies. Industry experts suggest that these changes might present considerable upside for firms involved in generic pharmaceuticals distribution.
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.
