Erin Wright, an analyst from Morgan Stanley, reiterated the Buy rating on McKesson. The associated price target is $966.00.
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Erin Wright has given his Buy rating due to a combination of factors tied to McKesson’s durable growth and earnings visibility. Management expects another year of performance at or above its long‑range plan, supported by robust momentum in higher‑margin specialty distribution and the RxTS segment, whose prior‑authorization platform benefits from scale and deep connectivity across more than fifty thousand pharmacies and over one million providers.
Wright also highlights that biosimilars remain a structurally attractive profit driver, particularly in Medicare Part B, where greater service intensity supports better margins, while Part D dynamics and private‑label competition have had limited impact so far. In addition, McKesson’s predominantly fee‑for‑service contracting model shields operating income from Inflation Reduction Act–related price cuts, and ongoing AI‑driven efficiency gains are bolstering free‑cash‑flow, justifying an Overweight stance and a higher target multiple into FY27.
According to TipRanks, Wright is a 5-star analyst with an average return of 14.7% and a 62.50% success rate. Wright covers the Healthcare sector, focusing on stocks such as Cencora, Option Care Health, and Molina Healthcare.
In another report released yesterday, Citi also assigned a Buy rating to the stock with a $945.00 price target.