McKesson’s Strategic Positioning and Growth Potential: Buy Rating with $800 Price Objective

Allen Lutz, an analyst from Bank of America Securities, maintained the Buy rating on McKesson (MCK – Research Report). The associated price target remains the same with $800.00.

Allen Lutz has given his Buy rating due to a combination of factors that highlight McKesson’s strategic positioning and growth potential. One key aspect is the company’s approach to the Most Favored Nation (MFN) executive order, which McKesson’s management views as having limited impact on their operations by FY26. They anticipate a period of proposals and potential legal challenges, but do not foresee significant disruptions, especially in the community provider setting, which remains a cost-effective care delivery method.
Additionally, the decision to separate the Medical-Surgical Solutions segment into an independent entity is seen as a strategic move to enhance focus on growth areas and optimize capital deployment. This separation is expected to unlock value and improve operational focus, given the segment’s existing operational independence. McKesson’s consistent growth trajectory, coupled with strong free cash flow generation, supports the Buy rating, with a price objective set at $800, reflecting confidence in the company’s ability to maintain its growth algorithm and shareholder return commitments.