McKesson (MCK – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Allen Lutz from Bank of America Securities maintained a Buy rating on the stock and has a $590.00 price target.
Allen Lutz has given his Buy rating due to a combination of factors that underscore McKesson’s robust growth prospects and strong financial health. He emphasizes the company’s consistent performance in the U.S. Pharmaceutical sector, driven by stable utilization trends that are expected to continue. The significant growth in oncology and biopharma services, coupled with the expansion of McKesson’s capabilities, also contribute to this positive outlook. Furthermore, the company’s solid balance sheet, investment-grade credit rating, and its strategic flexibility in capital return to shareholders reinforce the company’s strong financial position.
Additionally, McKesson’s growing oncology platform, which now includes a network of 2,600 providers across 31 states, sets the company apart as a key player in the industry. The company’s ability to integrate its distribution network, group purchasing organization services, and data insights to offer differentiated solutions is a strong value proposition. Lutz also notes the forward momentum in the Prescription Technology Solutions segment and anticipates continued growth driven by branded prescription volume and new brand launches. Investments in artificial intelligence that enhance workflow automation are expected to contribute to sustained growth. Based on these factors, Lutz maintains confidence in McKesson’s financial performance and reaffirms the Buy rating with a price objective of $590.
In another report released on May 9, Deutsche Numis also maintained a Buy rating on the stock with a $545.00 price target.
MCK’s price has also changed moderately for the past six months – from $450.780 to $555.760, which is a 23.29% increase.
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McKesson (MCK) Company Description:
Incorporated in 1833, Texas-based McKesson Corp. provides pharmaceuticals, health information technology, medical supplies, and care management tools. The company operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions, International, and Medical-Surgical Solutions.
Read More on MCK:
- Third Point takes new position in Alphabet, exits U.S. Steel
- McKesson price target lowered to $545 from $547 at Deutsche Bank
- McKesson price target raised to $551 from $502 at Wells Fargo
- McKesson price target raised to $600 from $590 at Evercore ISI
- McKesson price target raised to $617 from $606 at Leerink
