Cardinal Health Inc CAH's recent pair of billion-dollar-plus acquisitions should boost its earnings growth in the year ending June 2017, an analyst said Tuesday.
UBS's Steven Valiquette boosted his price target about 2 percent to $97, maintaining a Buy rating on the drug distributor.
The company's shares are nearly unchanged in the past three months, trading recently at $87.76, down $0.23 on the day.
Cardinal, with a market capitalization of about $29.02 billion, on Friday said it will acquire privately held distributor Harvard Drug Group for $1.12 billion cash and debt.
Cardinal last month sealed a $1.94 billion cash deal to acquire Cordis, a maker of cardiology and endovascular products, from Johnson & Johnson JNJ. The transaction was proposed in March.
Valiquette said the two deals will boost Cardinal's fiscal 2017 earnings and he raised his estimate 4 percent to $5.78 a share.
On Friday, Cardinal said it will issue $1.5 billion of new debt related to the two acquisitions.
Moody's said the Harvard deal won't affect Cardinal's Baa2 medium-grade debt rating.
Cardinal, also Friday, forecast adjusted earnings for fiscal 2016 of $4.75 to $5.05 a share.
Valiquette continues to expect fiscal 2016 earnings of $4.95 a share, versus a Wall Street consensus of $4.91.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.