Cardinal Health (NYSE:CAH) shares jumped by nearly 2.5% today after the healthcare services provider agreed to acquire multi-specialty group Specialty Networks for $1.2 billion in cash.
This strategic M & A move complements CAH’s presence in key therapeutic areas by bolstering its downstream analytics capabilities and offerings. Additionally, the deal enhances upstream data and research opportunities for the company in the biopharmaceutical space.
Moreover, the combination of Specialty Networks’ technology solutions, such as PPS Analytics and Cardinal’s scale, enhances the value proposition for the company. Notably, Cardinal expects the transaction to be accretive to its bottom line 12 months post-closure.
Separately, Cardinal is slated to report its second-quarter results tomorrow. Wall Street expects the company to post an EPS of $1.60 on $57.02 billion in revenues for the quarter. In the comparable year-ago quarter, Cardinal’s EPS of $1.32 outpaced expectations by a wide margin of $0.18.
What Is the Target Price for CAH Stock?
Shares of the company have rallied by nearly 41% over the past year. Overall, the Street has a Moderate Buy consensus rating on Cardinal Health, and the average CAH price target of $109.82 implies the stock may be hovering at fair valuation levels at present.
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