McKesson’s Strategic Growth and Core Focus Justify Buy Rating

Analyst Erin Wright of Morgan Stanley maintained a Buy rating on McKesson (MCK – Research Report), retaining the price target of $745.00.

Erin Wright has given his Buy rating due to a combination of factors that highlight McKesson’s strong growth prospects and strategic initiatives. One of the key reasons is the anticipated growth in the US Pharma Distribution segment, which is expected to see a significant increase in operating income in the coming years. This growth is supported by McKesson’s strategic acquisitions and strong utilization trends across the distribution sector.
Additionally, McKesson’s focus on expanding its Specialty business, particularly through investments like the PRISM Vision deal, positions the company well in high-growth areas such as ophthalmology and oncology. The company’s strategy to divest its Medical Surgical business to concentrate on core competencies further underscores its commitment to strengthening its primary business areas. These strategic moves, coupled with the company’s ability to navigate regulatory challenges, contribute to the positive outlook and justify the Buy rating.