McKesson initiated with an Outperform at Leerink

Leerink initiated coverage of McKesson with an Outperform rating and $600 price target. A premium valuation to historical trading is warranted given that the firm thinks McKesson has successfully transformed itself from a pharma distributor with ancillary businesses to “an enterprise healthcare services entity” and that the totality of the growth, combined with positive end market exposure across its major segments, should sustain the company at/above its long-term targets.