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Auriga Reiterates a 'Buy' on McKesson (MCK); Center Stage of Strong Qtr Include Katz Acquisition and Increased Buyback

January 31, 2012 1:25 PM EST
MCK Hot Sheet
Rating Summary:
    5 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Auriga reiterates a 'Buy' on McKesson (NYSE: MCK) price target of $95.00.

Auriga analyst said, "We reiterates our rating on MCK on the heels of a strong quarter in which results outpaced consensus estimates. McKesson's portfolio approach to capital deployment was evidenced in the quarter as it: 1) announced the $918 million acquisition of Katz Groups' banner and franchised pharmacy operations, and 2) increased its share buyback authorization by $650 million. While some headwinds are surfacing as the fiscal year winds down, in the form of the Veterans Administration renewal, for one, we think the recent weakness in MCK shares more than reflects the risks. Meanwhile we are comfortable with our below-consensus FY13 EPS estimate."

For an analyst ratings summary and ratings history on McKesson click here. For more ratings news on McKesson click here.

Shares of McKesson closed at $78.69 yesterday, with a 52 week range of $67.59-$87.32.


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