Cardinal Health assumed with an Outperform at Mizuho

Mizuho analyst Steven Valiquette assumed coverage of Cardinal Health (CAH) with an Outperform rating and $139 price target. Cardinal has seen improved EBIT growth in its core “Pharmaceutical & Specialty” segment over the past two fiscal years and in Q1 of FY25, notes the analyst, who also points out that the shares have historically traded at a discount to peers Cencora (COR) and McKesson (MCK). While the firm expects this “modest discount to continue,” it thinks Cardinal may close the gap further with pending M&A, the analyst tells investors.