Evercore ISI lowered its price target on McKesson (NYSE: MCK) to $160.00 (from $164.00) while maintaining a Outperform rating.

Analyst Ross Muken trimmed FY19 EPS from $13.45 to $13.25, FY20 from $14.60 to $14.40 and initiated FY21 at $15.55.

What he liked:

1. FY19 guide was reiterated with revenues expected to be up MSD (better than our forecast) with MedSurg + NA Pharma the key upside drivers
2. The BoD approved a new $4 Bn share repurchase program and plans to continue a portfolio capital allocation strategy

What Concerns Them

1. With respect to the US Pharma and Specialty adjusted op. profit guidance of flat to down MSD, management mentioned a very large acquisition in the grocery business last year that affected the company negatively in addition to the loss of RAD stores which provides a little bit of a near-term headwind
2. Change Healthcare income is only expected to be up LSD to MSD in FY19 (below our expectations) primarily reflecting progress against the cost synergy target, partially offset by anticipated higher interest expense