Wells Fargo Upgrades Cardinal Health (CAH) Stock, Lifts PT

On June 3, Wells Fargo analysts upgraded Cardinal Health, Inc. (NYSE:CAH)’s stock to “Overweight” from “Equal Weight,” lifting the price objective to $179 from the prior target of $136, as reported by The Fly.

A senior physician in a modern healthcare institution administering medication to a patient.

The upgrade comes off the back of improved valuation and a tighter spread as compared to peers. The valuation is justified by a robust industry backdrop, improving mix, and execution.

Furthermore, the analysts highlighted potential upward revisions if Cardinal Health, Inc. (NYSE:CAH)’s recent outperformance in its Pharma segment sustains or if GMPD tariff headwinds are less severe than the expectations. The company’s discussion of tariffs reflects a significant amount of non-price offsets, which might be durable even if there is a decrease in the gross pressure from tariffs.

The Pharmaceutical and Specialty Solutions segment profit rose by 14% to $662 million in Q3 2025, thanks to the contributions from brand and specialty products, MSO platforms (including GI Alliance), BioPharma Solutions (including Specialty Networks), and positive generics program performance. However, the growth was partially mitigated by the customer contract expiration.

Cardinal Health, Inc. (NYSE:CAH) raised and narrowed its FY 2025 guidance range for non-GAAP diluted EPS to $8.05 – $8.15 from the prior range of $7.85 – $8.00.

Cardinal Health, Inc. (NYSE:CAH) operates as a healthcare services and products company.

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Disclosure: None.