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Research Alert: CFRA Retains Buy Opinion On Shares Of Cardinal Health, Inc.

· 02/05/2021 05:57

10:55 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our target at $62, 10x our FY 22 (Jun.) EPS estimate, below CAH's historical forward P/E average of 12.4x, due to legal risks. We continue to think CAH shares offer an attractive risk/reward opportunity at current valuations. We lift our FY 21 EPS estimate by $0.17 to $5.97 and our FY 22 by $0.16 to at $6.23. Dec-Q EPS of $1.74 vs. $1.27 (+14% Y/Y) was $0.29 above the consensus estimate and $0.17 higher than ours. CAH reported Dec-Q sales of $41.5B (+5% Y/Y), $103M above consensus. This was due to continued sales growth in the core Pharma segment (90% of total) and a solid rebound in the Medical segment (MS) sales during the quarter (10% of total, +7% Y/Y). Unprecedented demand for PPE and higher sales volume in the lab business more than offset the negative impact stemming from elective procedure delays and cancellations for the MS. Improvement in the MS profit margin was noteworthy (+62 bps, 5.48%) in Dec-Q, as cost savings initiatives stemming from enhanced manufacturing efficiencies paid off.