BofA raised the firm’s price target on McKesson (MCK) to $800 from $755 and keeps a Buy rating on the shares. McKesson’s decision to sell the Med-Surg business and focus on growth opportunities in the U.S. Pharmaceutical and Prescription Technology Solutions business is “positive” and should improve the enterprise growth profile over time, the analyst tells investors. McKesson is well positioned to grow above market given its head start with US Oncology and recent investment in PRISM, adds the analyst, who expects durable 12-14% EPS growth over time and is increasing the firm’s earnings multiple to reflect faster growth and the recent increase in peer multiples.
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