Morgan Stanley analyst Erin Wright has maintained their bullish stance on MCK stock, giving a Buy rating on September 26.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Erin Wright has given his Buy rating due to a combination of factors that highlight McKesson’s strategic positioning and potential for growth. The recent Sum-of-the-Parts (SOTP) analysis indicates a significant upside potential of approximately 20% from the current stock price, even though the price target is set more conservatively at $857. This optimism is partly driven by McKesson’s decision to divest its Med-Surg business through an IPO, which is expected to sharpen the company’s focus on its core competencies, particularly in the Oncology and Multispecialty segments.
Furthermore, the Oncology segment alone represents a substantial market opportunity with a total addressable market of around $115 billion, where McKesson is well-positioned due to its extensive provider network. The company’s latest reporting structure enhances transparency, providing investors with clearer insights into the business’s performance. Additionally, McKesson’s strategic moves are seen as a safeguard against potential drug pricing changes, reinforcing its position as a stable player in the healthcare distribution sector with reliable cash flows and robust margins.
According to TipRanks, Wright is a 5-star analyst with an average return of 13.4% and a 64.99% success rate. Wright covers the Healthcare sector, focusing on stocks such as Centene, CVS Health, and UnitedHealth.
In another report released on September 26, J.P. Morgan also maintained a Buy rating on the stock with a $853.00 price target.