McKesson (MCK) PT Raised to $965 at Leerink Partners

Leerink Partners analyst Michael Cherny raised the price target on McKesson (NYSE: MCK) to $965.00 (from $850.00) while maintaining a Outperform rating.

The analyst comments "MCK finished off an incredibly strong distributor quarter with an enterprise-wide beat that included all three major segments comfortably outperforming our/consensus expectations. It’s clear that MCK’s mix, combined with a robust end-market, is fueling momentum that we struggle to see abating anytime soon. There was some nitpicky feedback related to the one-time O&M benefits in the quarter, but these (along with the very visible deal contributions) were already assumed in guidance. The re-acceleration of RxTS growth is also encouraging. This business is prone to seasonality but the underlying annualized growth, led by prior authorizations, helps fuel enterprise acceleration. With the stock at all-time highs the bar was clearly elevated. We can’t predict what the stock will do immediately off the back of this, but we do think, relative to enterprise growth and the outlook, that the bar was cleared for ongoing stock potential. We are reiterating our Outperform rating and increasing our PT from $850 to $965. Our target multiple is up from ~20x CY26 P/E to ~22.5x, reflecting ongoing growth upside and group multiple re-ratings, with our target multiple in line with our multiple for peer COR (OP)."

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