UPDATE: Morgan Stanley Reiterates On Cardinal Health On Dublin Day Takeaways
In a report published Wednesday, Morgan Stanley analyst Ricky R. Goldwasser reiterated an Overweight rating on Cardinal Health (NYSE: CAH), but removed the $76.00 price target.
In the report, Morgan Stanley noted, “Contribution from CVS JV should ramp through FY15 with benefit weighted towards 2H, reaching full run-rate in FY16. Lines between channels of trade will likely continue to blur as scale becomes most critical. Importantly the CVS JV provides manufacturers with access to 3 channels (retail, distributor, and mail). JV structure has been well received by existing customers. Longer term, as the gap between top 3-4 buyers and the rest widens, larger pharmacies likely to rethink existing self-warehousing generic strategy.”
Cardinal Health closed on Tuesday at $66.20.
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