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Morgan Stanley analyst Erin Wright maintains Cardinal Health (NYSE:CAH) with a Overweight and raises the price target from $255 to $265.
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Cardinal Health's generics business continues to be a steady profit contributor, with fiscal 2026 volume growth exceeding long-term planning assumptions of 2-3%. The company expects fiscal 2027 to benefit from new generic launches, brand-to-generic conversions, and stable Red Oak program dynamics, supporting projected Pharma segment profit growth of 8-11%. Peers McKesson and Cencora also show strength in their pharmaceutical distribution and generics portfolios.
Cardinal Health's CFO Aaron Alt sold 42,000 shares worth $9.9 million on August 18, reducing his direct holdings to 20,495 shares. The sale occurred after the stock surged 57% over the past year. Despite the insider sale, the company maintains strong guidance with fiscal 2027 EPS projected at $12.40-$12.60 (13-15% growth), planned capital expenditures of $700 million, and at least $1 billion in share repurchases expected.
RBC Capital analyst Ryan Halsted initiates coverage on Cardinal Health (NYSE:CAH) with a Outperform rating and announces Price Target of $276.