UPDATE: Sterne Agee Initiates Coverage on Cardinal Health with Neutral Rating, $48 PT on Dominant Market Share

In a report published Thursday, Sterne Agee analyst Greg T. Bolan initiated coverage on

with a Neutral rating and $48.00 price target. In the report, Sterne Agee noted, “With dominant market share of the independent pharmacy drug distribution channel, we believe CAH's profitability will benefit from an acceleration in brand-to-generic conversion in CY14/15. However, with EPS growth in CY14 that should be inferior to that of its peers, we do not believe CAH shares will outperform the peer group over the NTM. We initiate with a Neutral rating and $48 price target.” Cardinal Health closed on Wednesday at $53.32.