Morgan Stanley Raises Price Target for Cardinal Health Amid Industry Optimism
Written by Emily J. Thompson, Senior Investment Analyst
0mins
Should l Buy CAH?
Source: Newsfilter
Cardinal Health Inc's stock fell by 5.00% as it crossed below the 5-day SMA, reflecting broader market trends.
Despite the decline, Morgan Stanley upgraded Cardinal Health's price target to $245, indicating confidence in the drug distribution industry's continued growth in 2026. This upgrade comes amid a positive outlook for the sector, suggesting that Cardinal Health may benefit from ongoing market consolidation and strategic optimizations within the industry.
The implications of this upgrade could lead to renewed investor interest in Cardinal Health, especially as the company navigates through a challenging market environment.
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Analyst Views on CAH
Wall Street analysts forecast CAH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAH is 225.18 USD with a low forecast of 209.00 USD and a high forecast of 244.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 227.180
Low
209.00
Averages
225.18
High
244.00
Current: 227.180
Low
209.00
Averages
225.18
High
244.00
About CAH
Cardinal Health, Inc. is a global healthcare services and products company. The Company is engaged in providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and patients in the home. The Company also provides pharmaceuticals and medical products. Its segments include Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution (GMPD). The Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceuticals, specialty pharmaceuticals and over-the-counter healthcare and consumer products in the United States, as well as it owns urology MSO. Its GMPD segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. The Company connects patients, providers, payers, pharmacists and manufacturers for integrated care coordination.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Trends in Healthcare Demand: With the aging American population, healthcare demand continues to rise, and Cardinal Health aligns with government goals to enhance access, affordability, and innovation, aiming to optimize the overall efficiency of the healthcare ecosystem.
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See More
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See More
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- Upgraded Full-Year Guidance: The company raised its FY2026 non-GAAP diluted EPS guidance to $10.15 to $10.35, up from the previous range of $9.65 to $9.85, demonstrating confidence in future performance.
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See More
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- Impact of Subsidy Changes: As the Trump administration's healthcare policies evolve, particularly with the expiration of Affordable Care Act subsidies at the end of 2025, Cardinal Health has not yet observed a decline in demand, indicating the company's resilience in the face of potential patient cost increases.
- Trends in Healthcare Demand: With the aging American population, healthcare demand continues to rise, and Cardinal Health aligns with government goals to enhance access, affordability, and innovation, aiming to optimize the overall efficiency of the healthcare ecosystem.
- Tariff Pressure Management: In response to tariff pressures, Cardinal Health has adopted a transparent pricing strategy within its medical products business, where, despite efforts to enhance operational efficiency, the company has raised prices on key products to offset rising costs, reflecting market realities.
- Market Adaptability: Despite facing policy and market challenges, Cardinal Health is committed to maintaining accessibility and innovation in healthcare services through collaboration with the government, ensuring competitiveness in a rapidly changing healthcare environment.
See More
Healthcare Stocks Shine with McKesson Up 16.6%
- Healthcare Sector Performance: In Thursday's trading, healthcare stocks emerged as the best-performing sector, rising by 0.2%, with McKesson Corp (MCK) leading the charge with a 16.6% gain, indicating strong market demand that could attract more investor interest in the sector.
- Cardinal Health's Gains: Cardinal Health, Inc. (CAH) also performed well, with a 9.0% increase, suggesting a solid position in the healthcare supply chain that may further enhance its market share and investor confidence.
- ETF Trends: Despite the overall positive performance in healthcare, the Health Care Select Sector SPDR ETF (XLV) fell by 0.5%, indicating a preference for individual stocks over ETFs, which may lead to a shift in capital towards more promising equities.
- Utilities Sector Stability: The utilities sector showed relative stability, with CMS Energy Corp (CMS) up 2.4% and PPL Corp (PPL) up 1.4%, reflecting investor preference for stable returns, which may attract more capital into this sector in the future.
See More
Significant Stock Movements in Midday Trading
- McKesson Earnings Beat: McKesson's fiscal third-quarter earnings per share exceeded Wall Street's highest estimates, and the adjusted full-year EPS guidance was raised above analyst consensus, leading to a 16% stock price increase, indicating strong performance in the medical supply sector.
- Bob's Discount Furniture IPO: Bob's Discount Furniture debuted on the New York Stock Exchange with shares priced at $17, recently rising 10%, marking a successful entry into the public market and laying the groundwork for future growth.
- Fluence Energy Earnings Miss: Fluence Energy reported first-quarter revenue of $475.2 million, falling short of the $481.2 million consensus, with a per-share loss of 34 cents missing the 21-cent loss estimate, resulting in a 31% stock price drop, reflecting market concerns over its profitability.
- Cardinal Health Guidance Raised: Cardinal Health reported quarterly adjusted earnings of $2.63 per share, exceeding the $2.36 consensus, with revenue of $65.63 billion surpassing the $64.14 billion estimate, leading to an 8% stock price increase, showcasing strong growth potential in the healthcare services sector.
See More
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- Fiscal-Year Outlook Increase: Cardinal Health has raised its fiscal-year outlook for the second time in less than a month.
- Positive Financial Performance: The company’s recent adjustments indicate strong financial performance and confidence in future growth.
See More
Cardinal Health Shares Surge Following Earnings Report as CEO Discusses Success Factors.
- Fiscal-Year Outlook Increase: Cardinal Health has raised its fiscal-year outlook for the second time in less than a month.
- Positive Financial Performance: The company’s recent adjustments indicate strong financial performance and confidence in future growth.
See More
Cardinal Health Q2 Earnings Beat Expectations, Raises Full-Year EPS Guidance
- Strong Earnings Report: Cardinal Health reported a non-GAAP diluted EPS of $2.63 for Q2 FY2026, a 36% increase from $1.93 in the same period last year, indicating a significant improvement in profitability.
- Robust Revenue Growth: The pharmaceutical and specialty solutions segment saw a 19% year-over-year revenue growth, reaching $60.7 billion, reflecting strong market demand and the company's competitive position in the industry.
- Upgraded Full-Year Guidance: The company raised its FY2026 non-GAAP diluted EPS guidance to $10.15 to $10.35, up from the previous range of $9.65 to $9.85, demonstrating confidence in future performance.
- Cash Flow Status: As of the end of FY2025, Cardinal Health had approximately $2.8 billion in cash and equivalents, down from $3.9 billion on June 30, 2025, highlighting the need for careful liquidity management.
See More
