BofA raised the firm’s price target on Cardinal Health to $115 from $112 and keeps a Neutral rating on the shares after its Q2 earnings beat and guidance raise. Drug distributors remain one of the best sub-sectors in healthcare services, driven by steady competitive dynamics and above trend utilization, the analyst tells investors in a research note. The combination of weaker Medical segment EBIT and slightly higher operating expenses indicates core growth is trending below the firm’s prior expectations, though Cardinal Health management also indicated it has a strong line of sight into drivers of the second-half ramp, particularly in Medical, the firm added.
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