McKesson price target raised to $670 from $590 at BofA

BofA raised the firm’s price target on McKesson to $670 from $590 and keeps a Buy rating on the shares after Independent Pharmacy Cooperative, which the firm identifies as one of the largest group purchasing organizations to community pharmacies, signed a new supply agreement with the company. The firm had previously thought that it would be more difficult to award McKesson a higher multiple, but the IPC news points to more industry stability, which provides it with greater confidence in McKesson’s intermediate term growth algorithm, the analyst tells investors.