Analyst Michael Cherny of Leerink Partners reiterated a Buy rating on McKesson, 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 long-term growth potential. Despite the first quarter results showing limited immediate upside, the company’s core pharmaceutical segment demonstrated significant growth momentum with a 17% increase in segment EBIT. This indicates a solid trajectory for the business, supported by improved performances in both the RxTS and Med-Surg segments, which are expected to continue on a positive path.
Moreover, McKesson’s RxTS business experienced a 16% revenue growth driven by higher prescription volumes and a 21% EBIT growth due to increased demand for access solutions. The Med-Surg segment also reported a robust 22% EBIT growth, benefiting from operational efficiencies and cost optimization. The upward revision in US Pharma guidance for FY26 further underscores the company’s potential for sustained growth, driven by strong utilization trends and strategic expansions. These factors collectively justify the Outperform rating and the maintained price target of $785.
Cherny covers the Healthcare sector, focusing on stocks such as McKesson, Doximity, and CVS Health. According to TipRanks, Cherny has an average return of 3.3% and a 51.62% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $830.00 price target.