S&P Capital IQ Reiterates BUY Rating on Cardinal Health, Target Price Raised

October 29 00:00 2011

New York, October 29(RainbowNewsLine.com) – Analyst Herman Saftlas of S&P Capital IQ reiterates his BUY rating on the shares of Cardinal Health (NYSE: CAH), while raising his estimates for the company. The 12-month target price has been raised from $49 to $51.

Analyst Herman Saftlas, in a research note published yesterday mentions the company has reported its Q1 non-GAAP in line with the consensus. Drug distribution was a key factor during Q1 which resulted in 19% profit growth, more than offsetting a 5% decline in medical segment profits that were impaired by higher commodity and regulatory related costs, the analyst says. The analyst expects low teen growth for FY 2012 (Jun), driven by expansion in higher-margin generics volume and greater contributions from recent acquisitions. The EPS estimate for FY 2012 has been raised from $3.10 to $3.13.

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