McKesson (NYSE:MCK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm currently has a $169.00 price target on the stock. Zacks Investment Research‘s target price indicates a potential upside of 13.04% from the stock’s previous close.
According to Zacks, “McKesson's recent acquisition of RxCrossroads is a positive. It should strengthen the company’s foothold in pharmaceutical and biotechnology space. Among other buyouts, the purchase of retailer Well.ca is expected to bring online commerce capabilities and digital experience to McKesson Canada's retail assets. The company’s strong guidance for fiscal 2018 also holds promise. On the flip side, stiff competition, currency headwind, reimbursement issues continue to pose challenges. Pricing pressure in the independent retail pharmacy channel is a headwind. Particularly, McKesson’s sell-side pricing environment continues to remain competitive with less pricing variability. Over the past year, McKesson underperformed the broader industry in terms of prices.”
MCK has been the subject of several other reports. Needham & Company LLC reissued a “buy” rating and set a $173.00 price target (down from $178.00) on shares of McKesson in a research report on Wednesday, November 1st. ValuEngine cut McKesson from a “buy” rating to a “hold” rating in a research report on Sunday, December 31st. Evercore ISI initiated coverage on McKesson in a research report on Thursday, January 4th. They set an “outperform” rating and a $179.00 price target for the company. Deutsche Bank initiated coverage on McKesson in a research report on Monday, December 4th. They set a “buy” rating and a $175.00 price target for the company. Finally, Credit Suisse Group reissued a “sell” rating and set a $130.00 price target on shares of McKesson in a research report on Friday, February 2nd. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and eleven have issued a buy rating to the stock. McKesson currently has an average rating of “Hold” and a consensus target price of $177.79.
McKesson (NYSE:MCK) last issued its quarterly earnings results on Thursday, February 1st. The company reported $3.41 EPS for the quarter, beating the consensus estimate of $2.92 by $0.49. McKesson had a return on equity of 22.98% and a net margin of 2.34%. The firm had revenue of $53.62 billion during the quarter, compared to analysts’ expectations of $51.98 billion. During the same period in the prior year, the firm posted $3.04 earnings per share. The business’s quarterly revenue was up 7.0% compared to the same quarter last year. sell-side analysts forecast that McKesson will post 12.71 earnings per share for the current fiscal year.
In other McKesson news, Chairman John H. Hammergren sold 65,000 shares of the company’s stock in a transaction that occurred on Thursday, December 14th. The stock was sold at an average price of $160.00, for a total value of $10,400,000.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. 1.20% of the stock is owned by corporate insiders.
Large investors have recently added to or reduced their stakes in the business. Icon Wealth Partners LLC bought a new position in shares of McKesson during the fourth quarter worth approximately $111,000. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC increased its stake in shares of McKesson by 176.6% during the fourth quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC now owns 769 shares of the company’s stock worth $130,000 after purchasing an additional 491 shares during the period. Hikari Tsushin Inc. bought a new position in shares of McKesson during the fourth quarter worth approximately $151,000. Wealthcare Advisory Partners LLC bought a new position in shares of McKesson during the third quarter worth approximately $155,000. Finally, Virtue Capital Management LLC bought a new position in shares of McKesson during the fourth quarter worth approximately $180,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.
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McKesson Company Profile
McKesson Corporation is a healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology company. The Company provides medicines, medical products and healthcare services by partnering with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare.
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