Goldman Sachs Warming to Cardinal Health; Reiterates Neutral Rating (CAH)

Goldman Sachs is out with a short analyst note this morning, where it reiterates its Neutral rating on Cardinal Health (NYSE: CAH). GS analysts cited day 2 of their Global Healthcare Conference, when CAH spoke with an overall positive tone.The GS analyst said, “CEO George Barrett provided an update on the business where internal initiatives are tracking well and believes the company is in a position to look externally for strategic opportunities – as exemplified by the recent deal for specialty services provider Healthcare Solutions.”“CAH indicated that the deal creates a relevant footprint in the attractive specialty space, specifically in oncology, with impact on revenues expected to be a “gradual build”. Separately, we learned that the company’s contract with Kroger has been renewed and its Kmart contract is in the “late stages.””“On internal initiatives, CAH shared that its generic sourcing rationalization is complete and that the medical transformation effort is progressing nicely, with an expected benefit to the level of preferred product volumes – currently about a third of total medical profit.”See Some of the Top Moving Indexes Here.