Deutsche Bank Retains Buy Rating, $50 PT on Cardinal Health

Cardinal Health, Inc. (NASDAQ: CAH) is poised for sustainable O/P, “given attractive NT leverage to the favorable generics landscape, while also possessing a myriad of LT growth drivers including specialty, ambulatory, nuclear and China,” Deutsche Bank reports.

“We note a healthy balance sheet provides for NT upside optionality, with capital deployment likely focused on CAH's key growth initiatives (organic & inorganic) and maintaining a differentiated dividend policy (3rd highest yield amongst HC Service co's),” Deutsche Bank writes. “Based on attractive secular drivers & reasonable valuation, we retain a Buy rating and $50 PT.”

Cardinal Health closed Monday at $44.46.