Wells Fargo Maintains Overweight Rating on Cardinal Health with Raised PT to $185.

Wells Fargo Maintains Overweight Rating on Cardinal Health with Raised PT to $185.

Wells Fargo has maintained its "Overweight" rating on Cardinal Health (CAH) stock, raising its price target to $185. The investment bank's analysts have expressed optimism about the company's growth prospects and strategic initiatives. The update comes as Cardinal Health prepares to release its Q2 earnings on Tuesday, with analysts expecting revenue growth of 1.5% year-over-year (YoY) to $60.75 billion and adjusted EPS of $2.03 [2].

Cardinal Health's stock has shown resilience despite recent market volatility. The company has a consensus rating of "Moderate Buy" from 14 Wall Street analysts, with 11 giving a "Buy" rating [1]. The average price target from these analysts is $158.07, representing a forecasted upside of 0.40% from the current price of $157.44. However, Wells Fargo's raised price target reflects a more bullish outlook on the company's future performance.

In recent quarters, Cardinal Health has demonstrated solid earnings growth, with operating earnings increasing by 19% in Q4 2025. The company's strategic acquisitions and innovations, such as the acquisition of Solaris Health and the launch of new products like the Kendall DL MultiSystem medical monitoring device, have been highlighted during earnings calls [3]. These initiatives underscore the company's commitment to innovation and growth.

However, investors should be aware of potential risks. The company's peers in the healthcare providers & services segment have reported mixed results, with some beating estimates and others missing them. The healthcare sector has underperformed in recent months, with Cardinal Health down 2.7% over the last month [2]. Additionally, the company's price-to-earnings ratio is around 24.75, which could indicate that the stock is overvalued compared to its earnings potential [1].

In conclusion, Wells Fargo's raised price target and "Overweight" rating on Cardinal Health reflect the investment bank's optimism about the company's growth prospects. However, investors should carefully consider the potential risks and the company's recent performance before making investment decisions.

References:
[1] https://www.marketbeat.com/stocks/NYSE/CAH/forecast/
[2] https://www.ainvest.com/news/cardinal-health-q2-earnings-preview-revenue-growth-expected-slow-2508/
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-cardinal-health-q4-2025-misses-revenue-forecast-93CH-4185318