In a report released on May 9, Michael Cherny from Leerink Partners reiterated a Buy rating on McKesson (MCK – Research Report), with a price target of $785.00.
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Michael Cherny has given his Buy rating due to a combination of factors that highlight McKesson’s strong financial outlook and strategic initiatives. The company has demonstrated robust performance with its FY26 guidance and an increase in its US Pharma EBIT long-range plan, reflecting confidence in its long-term fundamentals. McKesson’s continued investment in its MSO segment and the strong performance of its RxTS division further bolster its growth prospects.
Additionally, the planned spin-off of the Med-Surg business is expected to enhance McKesson’s valuation, potentially aligning it more closely with the broader S&P 500. Despite potential challenges such as the enactment of most-favored nation drug pricing, the positives, including the company’s specialty platforms and strategic acquisitions, outweigh the negatives. Consequently, Cherny has reiterated an Outperform rating and increased the 12-month price target from $745 to $785, based on a projected 19x CY26 EPS.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $820.00 price target.