Cardinal Health (NYSE: CAH) has caught fresh momentum as Wells Fargo upgraded its rating from “Equal Weight” to “Overweight,” and boosted its price target to $179. The move signals heightened confidence in the company’s positioning within the healthcare supply chain, particularly in pharmaceutical distribution.
💉 The upgrade is driven by Cardinal’s sharp execution and improving fundamentals in its core business segments. Management has strategically doubled down on pharmaceutical and medical products distribution, allowing the company to streamline operations and boost margins. Coupled with favorable industry trends in healthcare utilization and drug demand, Cardinal appears to be hitting its stride.
📊 In its recent earnings, the company posted a 13% year-over-year increase in EPS to $2.35—beating consensus estimates. Management further raised full-year guidance to between $8.05 and $8.15 per share. These results underscore both operational efficiency and pricing discipline, key factors that likely influenced the bullish tilt from Wells Fargo.
💵 Cardinal Health pays a quarterly dividend of $0.5107, or $2.04 annually, offering a yield of around 1.3%. With a modest payout ratio of 31.4%, the dividend remains well-supported by earnings. While not a high-yield play, the company’s commitment to steadily growing dividends adds to its appeal for income-focused investors.
With execution firing on all cylinders and a solid capital return program, Cardinal Health is increasingly being seen not just as a defensive healthcare name—but as one with real upside potential.