Argus upgrades Cardinal Health to Buy on COVID-19 vaccine, generics demand

As previously reported, Argus analyst Kristina Ruggeri upgraded Cardinal Health to Buy from Hold with a $120 price target. The company is benefiting from its COVID-19 vaccine distribution and strong demand for its generics program amid an uncertain economy and a cautious consumer, having recently reported a Q2 earnings beat, the analyst tells investors in a research note. Argus is raising its FY24 EPS view to $7.14 from $6.79 and also raising its FY25 estimate to $7.72 from $7.50, adding that Cardinal’s struggling Medical segment is also showing signs of recovery, with quarterly revenue growth for the first time since the pandemic.