Cardinal Health: TD Cowen Raises Price Target to $150 Amid Strong Demand for Specialty Drugs

Cardinal Health (NYSE: CAH), a leading healthcare services and products company, has seen its price target raised by TD Cowen from $144 to $150. This upgrade comes amidst strong demand for specialty drugs and branded drugs, driving sales growth in the company's pharmaceutical segment. The analyst's bullish outlook on the company's future prospects is reflected in the increased price target.



The pharmaceutical segment of Cardinal Health has been a significant driver of revenue growth, with strong demand for costly specialty medicines and branded drugs. This trend is expected to continue, contributing to the company's long-term investment thesis. In its fiscal 2025 adjusted profit forecast, Cardinal Health raised its guidance primarily due to the robust demand for these products (Source: Reuters, Jan 28, 2025).

In addition to the strong performance in the pharmaceutical segment, Cardinal Health has been expanding its distribution services and medical products and distribution segments. The company's ability to provide customized solutions and optimize direct shipments through integrated technology solutions has contributed to the growth in these segments. Furthermore, the company's expansion into new markets and geographies has also supported its revenue growth and long-term investment thesis.



Cardinal Health's recent financial performance and market trends have led to positive analyst sentiment, with the average analyst rating for CAH stock being "Buy." The 12-month stock price forecast is $135.0, indicating a 9.17% increase from the latest price (Source: Benzinga, Jan 31, 2025). This positive sentiment, combined with the company's strong financial performance and growth initiatives, has contributed to the analyst's decision to raise the price target.



In conclusion, the raise in Cardinal Health's price target to $150 by TD Cowen reflects the company's strong performance in the pharmaceutical segment, driven by robust demand for specialty drugs. The company's expansion into new markets and geographies, along with its positive financial performance and analyst sentiment, supports the analyst's bullish outlook on the company's future prospects. As Cardinal Health continues to capitalize on growth opportunities in the healthcare industry, investors may want to consider the company as a potential investment option.