McKesson price target raised to $1,040 from $970 at BofA

BofA raised the firm’s price target on McKesson (MCK) to $1,040 from $970 and keeps a Buy rating on the shares. McKesson “quietly” received a new National Drug Code for a biosimilar version of Neulasta a few weeks ago and while investors may be skeptical of McKesson’s ambitions here, the firm frames “why this initial investor reaction could be wrong” based on seven large biosimilars coming to market over the next few years, including four that are directly addressable. The firm raised its McKesson target to reflect optionality on co-manufacturing and raised its Cencora (COR) target as well to reflect similar optionality.