Cardinal Health price target raised to $125 from $115 at Argus

Argus raised the firm’s price target on Cardinal Health to $125 from $115 and keeps a Buy rating on the shares after its Q4 results. The company has been facing challenges in its higher-margin Medical segment since the pandemic that have prevented it from passing on higher costs to its customers due to the long-term nature of its distribution contracts, and Cardinal has also recently lost a very large client representing over 15% of its revenue that will negatively impact Q1 results, but despite these challenges, it has made some impressive progress, the analyst tells investors in a research note. Strong cash flow from Cardinal’s generic program has provided the company with a sizeable cash balance that it used to repurchase $750M worth of its shares in FY24.