Citi ups McKesson target, opens ‘positive catalyst watch’

Citi raised the firm’s price target on McKesson to $525 from $490 and keeps a Buy rating on the shares. The firm says its recent conversations with distributors give it confidence that earnings momentum will continue into Q3. The backdrop remains favorable, with double digit growth in branded drug sales, driven by GLP-1s, utilization normalization, and a favorable generics environment, the analyst tells investors in a research note. Citi sees the most upside for McKesson this quarter, saying the company will benefit the most from continued GLP-1 strength. It opened a “positive 30-day Catalyst Watch” on McKesson, believing there is upside to consensus estimates largely stemming from GLP-1 utilization.