Goldman Sachs Added McKesson (MCK) to Conviction Buy List
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Price: $539.94 +0.84%
Rating Summary:
20 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
20 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Goldman Sachs added McKesson (NYSE: MCK) to its Conviction Buy List and raised its price target to $215.00 (from $208.00), citing underappreciated Celesio upside
Analyst Robert Jones said, "We add Buy-rated Mckesson (MCK) to the Americas Conviction List as we believe the Street is still underappreciating MCK’s outsized earnings potential post its acquisition of a more than 75% stake in Celesio, and expanded distribution contract with RAD."
He added, "Our FY14-FY16E EPS CAGR of 23% is the highest across large cap healthcare service stocks in the S&P 500, with our favorable view driven by: (1) upside to base Celesio synergies, with our $420mn base run rate by FY18 above guidance of $275- 325mn; (2) incremental SG&A synergies not in MCK’s guidance, given room for operational improvement at Celesio; and (3) upside optionality if MCK can continue to expand its generic purchasing volume across its large customers as industry generic procurement consolidates."
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 $182.37 yesterday.
Analyst Robert Jones said, "We add Buy-rated Mckesson (MCK) to the Americas Conviction List as we believe the Street is still underappreciating MCK’s outsized earnings potential post its acquisition of a more than 75% stake in Celesio, and expanded distribution contract with RAD."
He added, "Our FY14-FY16E EPS CAGR of 23% is the highest across large cap healthcare service stocks in the S&P 500, with our favorable view driven by: (1) upside to base Celesio synergies, with our $420mn base run rate by FY18 above guidance of $275- 325mn; (2) incremental SG&A synergies not in MCK’s guidance, given room for operational improvement at Celesio; and (3) upside optionality if MCK can continue to expand its generic purchasing volume across its large customers as industry generic procurement consolidates."
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 $182.37 yesterday.
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