McKesson Rating Reiterated by Zacks (MCK)
McKesson (NYSE:MCK)‘s stock had its “neutral” rating reaffirmed by Zacks in a research report issued to clients and investors on Thursday. They currently have a $197.00 target price on the stock. Zacks‘s price objective suggests a potential upside of 7.49% from the stock’s previous close.
Zacks’ analyst wrote, “McKesson Corporation’s fiscal fourth quarter 2014 (ended Mar 31, 2014) earnings of $2.55 per share easily beat the Zacks Consensus Estimate of $2.38 per share and were up 72% from the year-ago quarter. Revenues grew 25.0% to $38.1 billion in the fourth quarter of fiscal 2014, surpassing the Zacks Consensus Estimate of $35.2 billion. We are impressed by the fiscal fourth quarter beat and positive guidance for 2015. McKesson has been actively pursuing deals and acquisitions to drive growth. McKesson’s relentless efforts to acquire Celesio were commendable. McKesson has a history of successful acquisitions. We believe the Celesio acquisition is a step in the right direction and will allow McKesson to gain a strong foothold in Europe, thereby geographically expanding its core operations further. We maintain our Neutral recommendation. “
Shares of McKesson (NYSE:MCK) traded down 2.08% during mid-day trading on Thursday, hitting $183.27. The stock had a trading volume of 1,249,755 shares. McKesson has a 52 week low of $109.82 and a 52 week high of $192.03. The stock has a 50-day moving average of $178.6 and a 200-day moving average of $172.8. The company has a market cap of $42.258 billion and a price-to-earnings ratio of 34.54.
McKesson (NYSE:MCK) last announced its earnings results on Monday, May 12th. The company reported $2.55 earnings per share for the quarter, beating the analysts’ consensus estimate of $2.40 by $0.15. The company had revenue of $38.14 billion for the quarter, compared to the consensus estimate of $35.89 billion. During the same quarter last year, the company posted $1.45 earnings per share. McKesson’s revenue was up 25.0% compared to the same quarter last year. Analysts expect that McKesson will post $10.65 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, July 1st. Stockholders of record on Monday, June 9th will be paid a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a dividend yield of 0.52%. The ex-dividend date is Thursday, June 5th.
A number of other firms have also recently commented on MCK. Analysts at JPMorgan Chase & Co. reiterated an “overweight” rating on shares of McKesson in a research note on Tuesday, May 13th. They now have a $215.00 price target on the stock, up previously from $210.00. Separately, analysts at Morgan Stanley reiterated an “overweight” rating on shares of McKesson in a research note on Tuesday, May 13th. Finally, analysts at Bank of America reiterated an “underperform” rating on shares of McKesson in a research note on Tuesday, May 13th. They now have a $165.00 price target on the stock, up previously from $160.00. One analyst has rated the stock with a sell rating, three have assigned a hold rating, seven have issued a buy rating and two have given a strong buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $194.93.
In other McKesson news, EVP Patrick Blake unloaded 15,000 shares of McKesson stock on the open market in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $190.00, for a total transaction of $2,850,000.00. The sale was disclosed in a legal filing with the SEC, which is available at this link.
McKesson Corporation delivers pharmaceuticals, medical supplies and healthcare information technologies.
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