Cardinal Health Shares Surpass Analyst Target Price Amid Mixed Ratings
Recently, shares of Cardinal Health, Inc. (Symbol: CAH) traded above the average analyst 12-month target price of $145.44, currently priced at $145.53 per share. When a stock reaches an analyst’s target, there are typically two potential responses: a downgrade on valuation or an adjustment to a higher target price. The analyst’s reaction may also take into account business developments that have contributed to the stock’s rise, leading them to consider raising their target price.
Within Zacks’ coverage, there are 16 analysts contributing to Cardinal Health’s average target. This average reflects a collective perspective rather than a single expert’s view. Notably, some analysts maintain lower targets; for instance, one projects a price of $130.00, while another sets a more optimistic target at $161.00. The standard deviation among these targets is $9.959, indicating varied opinions on the stock’s valuation.
The rationale for analyzing the average target price stems from the “wisdom of crowds” approach. By synthesizing insights from multiple analysts, investors can gauge sentiment regarding possible future movements. With CAH now trading above the average target price of $145.44, investors should reassess the company’s prospects. They face a decision: is $145.44 merely a stepping stone toward a higher valuation, or has the price escalated to a point that suggests taking profits is prudent?
| Recent CAH Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 11 | 11 | 11 | 10 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 4 | 4 | 4 | 5 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.53 | 1.53 | 1.53 | 1.67 |
The average rating displayed in the table uses a scale from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. Data for this analysis comes from Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
