In a report released yesterday, Charles Rhyee from TD Cowen maintained a Buy rating on McKesson, with a price target of $830.00.
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Charles Rhyee has given his Buy rating due to a combination of factors that highlight McKesson’s strong performance and strategic positioning. The company’s impressive first-quarter results demonstrate its diversified exposure to rapidly growing segments of the healthcare supply chain. Management’s decision to raise the full-year earnings guidance, attributed to the sale of its Norway business and robust underlying performance, further underscores their confidence in McKesson’s future prospects.
McKesson’s notable 16.6% year-over-year growth in the U.S. Pharma segment is a testament to its solid core pharmaceutical growth and increasing contributions from specialty and biosimilar products. The company’s recent acquisition of the PRISM business is expected to bolster future biosimilar offerings. Additionally, the RxTS segment showed strong performance with a 22% year-over-year increase in adjusted operating income, aligning with management’s expectations. These factors, along with the strategic divestment of European businesses, contribute to Rhyee’s positive outlook on McKesson’s stock.
In another report released on August 1, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $763.00 price target.