Leerink Partners Reiterates Outperform Rating on McKesson (MCK) following CFO retirement announcement

Leerink Partners analyst Michael Cherny reiterated an Outperform rating and $1,085.00 price target on McKesson (NYSE: MCK)

The analyst commented, "We certainly weren't expecting news of longtime CFO Britt Vitalone's retirement after what has been an extremely strong run for the company during his time in the role. We appreciate that Mr. Vitalone is staying onboard through the separation of the MedicalSurgical business in an advisory role, supporting an orderly transition as new CFO Kenny Cheung joins MCK in late May. The spin is an additional element to what is already a sizable CFO role, so the extra support is warranted, in our opinion. Cheung's background makes a lot of sense, in our view. Ironically, he is the second consecutive Sysco (SYY, Not Covered) CFO to join a distributor in the same role, following in the footsteps of Cardinal (CAH, OP) CFO Aaron Alt. Importantly, MCK's core fundamentals remain strong with a recently updated LRP that should set MCK up for ongoing consistency. On that basis, the timing of Vitalone's retirement makes sense. Any surprise changes, for a company that has been a multi-year outperformer, can cause some short-term questions, but the strength of the portfolio and a deep operating bench allow for a transition on strong footing, in our view. We reiterate our Outperform rating"

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 $978.71 yesterday.

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