🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Argus upgrades Cardinal Health to Buy rating

EditorEmilio Ghigini
Published 02/09/2024, 08:42 AM
© Reuters.

On Friday, Argus made a bullish move on Cardinal Health (NYSE:CAH), upgrading the stock's rating to Buy from Hold. The firm recognized Cardinal Health as one of the United States' leading distributors of pharmaceuticals, as well as a global manufacturer and distributor of medical and laboratory products.

The upgrade comes after Cardinal Health's Pharmaceutical segment, which accounts for 93% of its revenue, has shown recovery from the impacts of the pandemic. However, the Medical segment, known for its higher margins, has been under pressure due to the long-term nature of its distribution contracts that have restrained the company from transferring increased costs to its customers.

Cardinal Health has also been in the headlines for its financial commitments related to the national opioid settlement, agreeing to pay up to $6B over the next 18 years. This settlement is a significant financial undertaking for the company and reflects its efforts to address the opioid crisis.

In addition to these developments, the company has attracted the attention of Elliot Management, an activist investment firm that has recently taken a sizable position in Cardinal Health. This investment move by Elliot Management is notable, as activist investors are often involved in pushing for changes that can unlock shareholder value.

The analyst's comments highlight the key factors that influenced the upgrade decision, pointing to the company's recovery and the recent involvement of Elliot Management. Cardinal Health's stock rating adjustment is a reflection of its current business dynamics and the potential for future growth as seen by Argus.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.