Daniel Grosslight, an analyst from Citi, maintained the Hold rating on Cardinal Health (CAH – Research Report). The associated price target was raised to $157.00.
Daniel Grosslight has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing uncertainties for Cardinal Health. The company demonstrated strong performance in its Pharma and Other segments, with impressive margin expansion and growth in higher-margin solutions. This positive momentum led to an increase in earnings per share guidance, showcasing the company’s ability to capitalize on its strengths.
However, Grosslight remains cautious due to the volatility in the GMPD segment and the potential impact of tariffs on profitability. Despite efforts to mitigate tariff costs, there remains a significant amount of exposure that could affect future earnings. These uncertainties, coupled with the unknowns surrounding the GMPD segment’s performance, contribute to the decision to maintain a Hold rating while adjusting the target price to reflect revised estimates.