Analyst Stephen Baxter of Wells Fargo maintained a Hold rating on McKesson (MCK – Research Report), boosting the price target to $691.00.
Stephen Baxter has given his Hold rating due to a combination of factors that balance both positive and cautious elements. On the positive side, McKesson’s forward estimates have been modestly increased, driven by stronger growth in the pharmaceutical segment and more credit given for the annualization of medical cost reductions. Additionally, the inclusion of the PRISM acquisition in the price target framework has contributed to a higher price target of $691, up from the previous $641.
However, despite these positive developments, Baxter maintains a Hold rating as the stock’s valuation appears relatively full compared to significant discounts observed across other companies in their coverage universe. While the fundamentals of McKesson remain robust, the current valuation limits the potential for significant upside, justifying the Hold stance.
According to TipRanks, Baxter is a 2-star analyst with an average return of 0.3% and a 38.25% success rate. Baxter covers the Healthcare sector, focusing on stocks such as Cardinal Health, CVS Health, and UnitedHealth.