In a report released today, Daniel Grosslight from Citi maintained a Buy rating on McKesson (MCK – Research Report), with a price target of $800.00.
Daniel Grosslight has given his Buy rating due to a combination of factors that highlight McKesson’s strong financial performance and strategic decisions. The company reported a solid quarter with double-digit adjusted operating profit growth across all segments, despite revenue and gross profit being slightly below expectations due to a mix shift. This was offset by operational efficiencies, and McKesson introduced FY26 guidance that exceeded both Citi’s and consensus expectations, particularly showing strength in U.S. Pharma.
Moreover, McKesson’s plan to separate its Med-Surg business is seen as a strategic move that will allow management to concentrate on the more lucrative Pharma and RxTs segments. This decision is expected to enhance capital deployment and focus on high-growth areas. Additionally, despite concerns over potential drug pricing changes, McKesson has strategies in place to mitigate any adverse impacts, reinforcing confidence in its future performance. Overall, these factors contribute to a projected share price return of 15.9%, supporting the Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $745.00 price target.