Citigroup Reiterates Buy, $51 Target on Cardinal Health
Citigroup maintains its Buy rating and $51 target price on Cardinal Health Inc. (NYSE: CAH) following a meeting with the company's executives that confirmed estimates.
Citi says, “– Last week's launch of generic Lipitor appears to have gone in line with management's expectations – and without a hitch – despite a few 11th hour theatrics Cardinal was ready to ship generic Lipitor from both Ranbaxy and Watson at the launch date to requesting customers. The launch situation appears optimal for Cardinal and the other wholesalers, with the two generic options, but management was prepared for several alternative outcomes. We note that we are $0.05 above consensus for F2Q and $0.02 above consensus for F3Q, and $0.09 above the Street for F2012. We are $0.04 above consensus for F2013.”
CAH closed at $41.03 per share on Tuesday.
