McKesson price target raised to $745 from $642 at Morgan Stanley

Morgan Stanley analyst Erin Wright raised the firm’s price target on McKesson (MCK) to $745 from $642 and keeps an Overweight rating on the shares. Drug distributors have re-rated higher and have held relatively steady in volatility, notes the analyst, who believes this should continue given the group’s “robust fundamental backdrop.” Noting that McKesson typically excludes MCK Venture contributions from long-term guidance, the firm expects FY26 EPS growth can slightly exceed the high end of the company’s 12-14% long-term range excluding the impact of MCK Ventures, the analyst tells investors.