UPDATE: ISI Group Downgrades Cardinal Health to Buy on Limited Catalysts Post Contract Loss

ISI Group downgraded Cardinal Health

from Strong Buy to Buy and lowered the price target from $50.50 to $48.50. ISI Group analyst Ross Muken commented, "Following [the] loss of the Walgreen contract, we are downgrading shares of CAH from Strong Buy to Buy. While the correction in shares (down ~8% today) leave CAH at a trough valuation, the overhang surrounding the renewal of the CVS contract, combined with constraints on core growth through FY14, leaves limited upside to shares on a near-term basis. Our new price target of $48.50 represents a total return of ~17% to current trading levels." Cardinal Health closed at $42.35 on Tuesday.