Morgan Stanley analyst Erin Wright has maintained their bullish stance on MCK stock, giving a Buy rating on September 19.
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Erin Wright has given his Buy rating due to a combination of factors that highlight McKesson’s strategic positioning and growth potential. The company has recently unveiled a new segmentation that provides greater transparency, particularly in its Oncology and Multispecialty business, which is expected to enhance investor confidence. This new structure is anticipated to offer better visibility into growth opportunities, especially in high-margin services, which have been a consistent performer.
Additionally, McKesson’s planned divestment of its Medical-Surgical segment is attracting investor interest, with expectations for favorable deal structures and pro-forma financials. The company’s focus on its core Prescription Technology Services (RxTS) and the long-term growth prospects in this area further support the positive outlook. Despite the challenging setup and high expectations, McKesson’s consistent fundamentals and cash-flow visibility position it as a relative safe haven in the healthcare services sector, justifying the Buy rating.
In another report released on September 19, Bank of America Securities also maintained a Buy rating on the stock with a $800.00 price target.