Barclays Maintains an 'Overweight' on McKesson (MCK); 10-year Anniversary, Bright Future for Branded Generic
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Price: $838.75 -1.75%
Rating Summary:
21 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
21 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Overweight' on McKesson (NYSE: MCK), PT increased from $84 to $100.
Barclays analyst says, "We are raising our estimates and price target (to $100) on MCK coming into Q4 release and FY12 guidance in early May, driven by expanded profit assumptions for its supply-chain business. Of note, our analysis of what we define to be MCK's new sourced branded generic product line, Northstar, has created what we believe is a meaningful differentiated platform of growth that augments the company's intact and growing OneStop Generics preferred sourcing program. Our proprietary product analysis suggests that MCK has quietly positioned Northstar as an important generic source in the market, now as the third-largest supplier of simvastatin in the U.S. We believe Northstar can provide the company incremental EPS of $.04-.05 for FY12 and up to $.10 for FY13 (though we caution that our profit assumptions could be well wide of the mark) and is a next-generation solution for this leading supply-chain provider that its peers would most likely want to emulate over time." (FY11 EPS estimate from $4.99 to $5.02 and FY12 from $5.58 to $5.75)
For more ratings news on McKesson click here and for the rating history of McKesson click here.
Shares of McKesson closed at $80.61 yesterday.
Barclays analyst says, "We are raising our estimates and price target (to $100) on MCK coming into Q4 release and FY12 guidance in early May, driven by expanded profit assumptions for its supply-chain business. Of note, our analysis of what we define to be MCK's new sourced branded generic product line, Northstar, has created what we believe is a meaningful differentiated platform of growth that augments the company's intact and growing OneStop Generics preferred sourcing program. Our proprietary product analysis suggests that MCK has quietly positioned Northstar as an important generic source in the market, now as the third-largest supplier of simvastatin in the U.S. We believe Northstar can provide the company incremental EPS of $.04-.05 for FY12 and up to $.10 for FY13 (though we caution that our profit assumptions could be well wide of the mark) and is a next-generation solution for this leading supply-chain provider that its peers would most likely want to emulate over time." (FY11 EPS estimate from $4.99 to $5.02 and FY12 from $5.58 to $5.75)
For more ratings news on McKesson click here and for the rating history of McKesson click here.
Shares of McKesson closed at $80.61 yesterday.
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