UPDATE: Morgan Stanley Downgrades Cardinal Health to Equal-Weight, Reiterates $86 PT as Valuation Reflects Balanced Risk-Reward

In a report published Monday, Morgan Stanley analyst Ricky R. Goldwasser downgraded the rating on

from Overweight to Equal-Weight, but reiterated the $86.00 price target. In the report, Morgan Stanley noted, “CAH reported a strong quarter benefiting from an earlier than expected ramp of Red Oak JV and ongoing generic inflation. With earnings upside playing out and only ~3% upside to our $86 price target we view risk-reward to be more balanced and are updating our rating to E-W.” Cardinal Health closed on Friday at $83.19.