Barclays Maintains an 'Overweight' on McKesson (MCK); Set to Succeed Again in FY12: Estimates, Target Up-Ticked Again After Visit

Barclays maintains an 'Overweight' on McKesson (NYSE: MCK), PT increased from $100 to $102.

Barclays analyst says, "Our annual Barclays Capital visit to McKesson's HQ led to us confirming that the company has extended its vendor relationships with two key customers: first with independent drug store GPO IPC in a multi-year contract whose members collectively represent some $8 billion in annual drug spend. Recall that IPC had filed a lawsuit against McKesson last fall, suggesting it was soliciting its customers directly. MCK has also extended its vendor contract with its Canadian business's largest customer the Katz Group (some $2 billion in annual revenues). Generic price inflation has become more widespread than we had originally estimated, which we believe leads to an incremental base of profit boost for FY12...we are raising our fiscal F12 Q1 estimates to $1.13, our FY12 estimate to $6.17."

For more ratings news on McKesson click here and for the rating history of McKesson click here.

Shares of McKesson closed at $85.04 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Barclays Downgrades Renault SA (RNO:FP) (RNSDF) to Equalweight
• Morgan Stanley Upgrades Megaport Ltd. (MP1:AU) (MGPPF) to Overweight
• TD Cowen Downgrades Roots Corp. (ROOT:CN) (RROTF) to Sell