UPDATE: Barclays Initiates Coverage on Cardinal Health

Barclays analyst Eric Percher began coverage on the US Health Care Distribution and Tech industry Wednesday morning including coverage initiation on Cardinal Health

with an Overweight rating and price target of $79. CAH and CVS Caremark

agreed on a joint venture that will kick off in July this year in which the companies plan to negotiate with generic makers for better pricing and save money in medical system. The report notes, "The CVS Caremark/Cardinal joint venture should ramp quickly given its simple structure and focus on the U.S. market. CVS Caremark should benefit from an incremental scale benefit, which we size at $72mn in 2016 and will receive $100mn from Cardinal, for whom we expect the JV will provide purchasing benefits of roughly $186mn in 2016." CAH closed Tuesday at $73.54 and opened Wednesday morning at $73.09.