Cardinal Health upgraded to outperform at Baird as 'value trap label' ready to end

Baird has upgraded Cardinal Health (NYSE:CAH) to outperform from neutral after the drug wholesaler raised its 2023 profit guidance and its quarterly results beat on the top and bottom lines.
Analyst Eric Coldwell said that the company "deserves to be on board for our positive drug distributor sector call."
He noted that the pharma segment is "narrowing long-running profit growth gap with peers."
Coldwell added that Cardinal Health (CAH) can be obtained at P/E and EBITDA discounts compared to peers.
Read why Seeking Alpha contributor Low Budget Dividend Investing, who considers Cardinal Health (CAH) a hold, says that it is "a recession-resistant stock."