Cardinal Health Lowered to “Neutral” at Lazard Capital Markets (CAH)

Cardinal Health (NYSE: CAH) was downgraded by Lazard Capital Markets from a “buy” rating to a “neutral” rating in a research note issued on Tuesday, reports.

The analysts wrote, “move to shift its distribution needs in-house.” The loss of business to AmerisourceBergen, however, was largely not expected and “inconsistent with” Lazard’s investment thesis on Cardinal. Gallucci noted the Walgreen deal potentially represented $20B+ in sales and around 7.5 percent of Cardinal Health’s earnings. Amid the concerning comments, Gallucci said losing the Walgreen deal could “free up significant working capital at Cardinal Health…”

CAH has been the subject of a number of other recent research reports. Analysts at Mizuho raised their price target on shares of Cardinal Health from $49.00 to $51.00 in a research note to investors on Thursday, March 7th. They now have a “buy” rating on the stock. Separately, analysts at Raymond James reiterated an “outperform” rating on shares of Cardinal Health in a research note to investors on Tuesday, February 12th. They now have a $50.00 price target on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Cardinal Health in a research note to investors on Monday, February 11th. They now have a $47.00 price target on the stock.

Four equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $49.55.

Shares of Cardinal Health (NYSE: CAH) remained flat at $42.35 during during mid-day trading trading on Tuesday. Cardinal Health has a 52 week low of $36.91 and a 52 week high of $47.23. The stock’s 50-day moving average is currently $45.58. The company has a market cap of $14.435 billion and a P/E ratio of 12.86.

Cardinal Health (NYSE: CAH) last issued its quarterly earnings data on Tuesday, February 5th. The company reported $0.93 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.86 by $0.07. The company had revenue of $22.75 million for the quarter, compared to the consensus estimate of $24.61 million. During the same quarter last year, the company posted $0.81 earnings per share. Cardinal Health’s revenue was down 6.8% compared to the same quarter last year. Cardinal Health has set its FY13 guidance at $3.42-3.50 EPS. On average, analysts predict that Cardinal Health will post $3.49 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which is scheduled for Monday, April 15th. Investors of record on Monday, April 1st will be given a dividend of $0.28 per share. This represents a $1.10 dividend on an annualized basis and a yield of 2.60%. The ex-dividend date of this dividend is Wednesday, March 27th.

Cardinal Health, Inc. (NYSE: CAH) is a global healthcare solutions company providing products and services to hospitals, physician offices and pharmacies.

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