- The shares of Cardinal Health Inc (NYSE: CAH) have received a $74 price target from Morgan Stanley. These are the details.
The shares of Cardinal Health Inc (NYSE: CAH) have received a $74 price target from Morgan Stanley. And Morgan Stanley analyst Ricky Goldwasser upgraded Cardinal Health to an “Overweight” rating from “Equal-Weight” while increasing the price target from $54.
Goldwasser adjusted the rating as part of a broader update to the drug distributor stock coverage. And Goldwasser pointed out that the drug distributor stocks have started to re-rate on the back of the removal of the opioid overhang, expectations of benefits from biosimilars, and as part of the rotation into value stocks.
Goldwasser pointed out that a rising tide has yet to fully lift Cardinal – which can now be seen as offering the best risk/reward skew given its discount to peers. For Cardinal, Goldwasser sees long-term value creation opportunities that could help drive earnings acceleration and a multiple re-rating over the next 12 to 24 months and argues that the Street is underestimating the positive impact biosimilars will have on Cardinal’s earnings growth.
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