Cardinal Health (NYSE:CAH) Value Expansion in 2012

Barclays (NYSE:BCS) sees value expansion for Cardinal Health (NYSE:CAH) in 2012, citing EPS estimates being guided upward.

"Cardinal's Investor Day was accompanied by announcements that we believe "de risk" FY11 and also set the stage for valuation expansion as we look to FY12. As we heard, the trajectory of annual EPS growth through FY15 goes from 8% to 10% in the company's outlook, with some near-term upside in a suggested 11% total shareholder return (EPS growth and dividend) implied...With Cardinal now moving from a "whiteboard" opportunity to a specific acquisition growth acceleration story now with P4, Kinray, and YongYu, we believe we'll see a move to "cash" EPS at Cardinal and in the drug supply chain in FY12. This should imply some alteration in how the Street will value shares," said Barclays.

Barclays maintains an "Overweight" rating on Cardinal Health, which closed Wednesday at $36.76, down $0.65, or 1.74 percent. They raised their price target on them from $43 to $46.