Analyst Kevin Caliendo from UBS maintained a Buy rating on McKesson and increased the price target to $860.00 from $820.00.
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Kevin Caliendo has given his Buy rating due to a combination of factors that highlight McKesson’s strong financial performance and strategic initiatives. The company’s effective cash flow management and reinvestment in high-growth markets, while divesting underperforming assets, have resulted in an improved return on invested capital. McKesson’s recent analyst day presentation revealed positive surprises, particularly the near-term outperformance driven by RxTS, which has enhanced the fiscal year 2026 outlook.
Additionally, McKesson’s management announced plans for a tax-free IPO of the Med-Surg segment, expected in the second half of calendar year 2027, which could unlock further value for shareholders. The company’s updated long-term targets reflect an improved outlook for its core pharma business, with increased EBIT and adjusted EPS growth expectations. These strategic moves, combined with a revised price target of $860, up from $820, underscore the positive sentiment and potential upside for McKesson’s stock.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $857.00 price target.