McKesson Corp. Downgraded to “Neutral” at Zacks (MCK)
McKesson Corp. (NYSE:MCK) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research report issued to clients and investors on Friday, American Banking & Market News reports. They currently have a $177.00 price target on the stock. Zacks‘ target price would suggest a potential upside of 5.28% from the stock’s previous close.
Zacks‘ analyst wrote, “McKesson Corporation’s second quarter of fiscal 2014 earnings of $2.27 per share was up 18.8% from the year-ago quarter. The Zacks Consensus Estimate was $2.03 per share. Revenues grew 10.7% to $32.9 billion, marginally surpassing the Zacks Consensus Estimate of $32.4 billion, driven by growth in generics. We are encouraged by the company’s upbeat performance in the fiscal first half and subsequent increase in guidance. However, we were disappointed by the company’s failure to acquire Celesio. The acquisition would have allowed McKesson to gain a solid foothold in Europe, thereby geographically expanding its core operations further. We downgrade our recommendation to Neutral as of now given the lack of catalysts in the short-term.”
Shares of McKesson Corp. (NYSE:MCK) traded down 0.26% during mid-day trading on Friday, hitting $168.12. 1,683,925 shares of the company’s stock traded hands. McKesson Corp. has a 1-year low of $101.46 and a 1-year high of $177.00. The stock has a 50-day moving average of $162.6 and a 200-day moving average of $140.2. The company has a market cap of $38.619 billion and a P/E ratio of 28.65.
McKesson Corp. (NYSE:MCK) last issued its quarterly earnings data on Thursday, October 24th. The company reported $2.27 EPS for the quarter, beating the Thomson Reuters consensus estimate of $2.03 by $0.24. The company had revenue of $33.00 billion for the quarter, compared to the consensus estimate of $32.16 billion. During the same quarter in the prior year, the company posted $1.92 earnings per share. The company’s quarterly revenue was up 10.8% on a year-over-year basis. On average, analysts predict that McKesson Corp. will post $8.61 earnings per share for the current fiscal year.
MCK has been the subject of a number of other recent research reports. Analysts at Morgan Stanley reiterated an “overweight” rating on shares of McKesson Corp. in a research note to investors on Tuesday. They now have a $180.00 price target on the stock, down previously from $190.00. Separately, analysts at UBS AG cut their price target on shares of McKesson Corp. from $190.00 to $187.00 in a research note to investors on Tuesday. They now have a “buy” rating on the stock. Finally, analysts at B. Riley raised their price target on shares of McKesson Corp. to $190.00 in a research note to investors on Monday. They now have a “neutral” rating on the stock. One investment analyst has rated the stock with a sell rating, three have given a hold rating, fifteen have assigned a buy rating and two have assigned a strong buy rating to the company. The company has a consensus rating of “Buy” and an average price target of $165.00.
McKesson Corporation delivers pharmaceuticals, medical supplies and healthcare information technologies.
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