Dividend.com: Cardinal Green Despite Cuts

UBS Cuts Estimates, Target for Cardinal

Cardinal Health(CAH Quote), which provides delivery services to the health care industry, saw its earnings estimates and price target cut by UBS Friday.

UBS lowered its price target for CAH shares to $36, and also lowered its earnings estimates for the company, citing lower generic revenue combined with timing of a certain contract payment.

However, UBS maintained its "Buy" rating on Cardinal shares.

Cardinal Health shares rose 19 cents, or +0.64%, in morning trading Friday.

We have avoided shares of CAH since our early June coverage began, when shares were trading at $55.98. The company will now have a dividend yield of 1.91%, based on the higher dividend payout and last night's closing stock price of $36.56.

The stock has technical support in the $27-$29 price area. If the shares can rebound from this morning's drop, we see overhead resistance around the $39-$40 price levels. We would remain on the sidelines for now.

Cardinal Health is not recommended at this time, holding a Dividend.com DARS Rating of 3.1 out of 5 stars.

DuPont Downgraded by Merrill Lynch Analysts

Science and technology giant DuPont(DD Quote) was downgraded Friday morning by Merrill Lynch analysts to "underperform" from "neutral," sending its shares falling.

Merrill said it made the downgrade based on concerns about DuPont's current valuation, as well as recent trends regarding the company's fundamentals. It also raised concerns about DuPont's seed business, costs associated with rising oil prices and patent expirations in its pharmaceutical business.

DuPont shares fell $2.15, or -7.5%, in morning trading Friday following the downgrade.