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RBC Capital Initiates Coverage on Cardinal Health With Bullish Outlook
Distribution Services · Medical Distributors · cnbc · 2026-08-19
.SPX, .IXIC, TJX, CAH, LLY, MRK, MRNA, BA, GEV
RBC Capital analysts have issued a buy-equivalent rating for Cardinal Health, citing strength in its pharmaceutical distribution and radiopharmaceutical units.
What Happened
Analyst Coverage Initiation: RBC Capital has officially launched coverage on Cardinal Health, assigning a buy-equivalent rating to the stock. The firm set a price target of $276, suggesting a potential 17% upside from the previous closing price.
Investment Thesis: The bullish sentiment from RBC is primarily driven by the company's core pharmaceutical distribution business and its expanding radiopharmaceutical network. This positive outlook aligns with recent quarterly performance and the company's robust guidance for the full fiscal year.
Portfolio Management Context: While the CNBC Investing Club acknowledges the strength of Cardinal Health, they currently maintain a hold rating on the stock with a $265 price target. Instead of adding to their CAH position, the fund recently opted to increase holdings in GE Vernova and Boeing.
Broader Market Observations: The broader healthcare sector saw significant movement recently, bolstered by positive clinical data from Moderna and Merck. Meanwhile, the Investing Club continues to monitor other holdings like TJX, viewing recent pullbacks as potential entry points for long-term investors.