Citi reiterates its Hold rating on Cardinal Health (NYSE:
CAH) following CAH's investor day.
In a note to clients, Citi writes, "Management expects FY2010-FY2015 non-GAAP EPS growth >10%, with LT total shareholder returns >11% (incl. dividends). FY11 non GAAP guidance of $2.38-$2.48 reiterated exacquisitions as CAH does not update guidance mid-quarter vs. our $2.53 estimate, with no expectation of healthcare utilization uptick for FY11. Also assume “neutral” impact from health reform that mgmt believes is conservative."
Citi has a $37 price target on CAH which closed yesterday at $37.41.
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