McKesson (MCK) – Investment Analysts’ Weekly Ratings Updates

Several analysts have recently updated their ratings and price targets for McKesson (NYSE: MCK):

  • 2/5/2018 – McKesson was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “McKesson has had a favorable run on the bourses over the last three months. Apart from the company’s balanced segmental and geographic show, we are upbeat about the recent acquisition of RxCrossroads which 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 holds promise. McKesson has had an impressive run on the bourse in the last three months. On the flipside, stiff competition, currency headwind, reimbursement issues remain 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.”
  • 2/2/2018 – McKesson was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $189.00 price target on the stock. According to Zacks, “McKesson ended the third quarter fiscal 2018 on a solid note with earnings and revenues both ahead of the Zacks Consensus Estimate. Apart from the company’s balanced segmental and geographic show, we are upbeat about the recent acquisition of RxCrossroads which 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 holds promise. McKesson has had an impressive run on the bourse in the last three months. On the flipside, stiff competition, currency headwind, reimbursement issues remain 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.”
  • 2/2/2018 – McKesson had its “sell” rating reaffirmed by analysts at Credit Suisse Group AG. They now have a $130.00 price target on the stock.
  • 2/2/2018 – McKesson had its price target lowered by analysts at Mizuho from $186.00 to $179.00. They now have a “neutral” rating on the stock.
  • 1/24/2018 – McKesson was given a new $186.00 price target on by analysts at Mizuho. They now have a “hold” rating on the stock.
  • 1/24/2018 – McKesson was upgraded by analysts at Jefferies Group LLC from a “hold” rating to a “buy” rating. They now have a $205.00 price target on the stock.
  • 1/23/2018 – McKesson had its price target raised by analysts at Needham & Company LLC from $173.00 to $180.00. They now have a “buy” rating on the stock.
  • 1/17/2018 – McKesson had its “buy” rating reaffirmed by analysts at Robert W. Baird. They now have a $200.00 price target on the stock.
  • 1/4/2018 – McKesson is now covered by analysts at Evercore ISI. They set an “outperform” rating and a $179.00 price target on the stock.
  • 12/31/2017 – McKesson was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
  • 12/26/2017 – McKesson was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $177.00 price target on the stock. According to Zacks, “McKesson has had an unimpressive run on the bourse in the last three months. However, solid performance at the Distribution Solutions segment is likely to drive growth. The company’s strong guidance for fiscal 2018 holds promise. The upside is expected to be driven by market growth, acquisitions and divestitures. Recently, McKesson announced that it has entered into an agreement to buy RxCrossroads from CVS Health for $735 million. The acquisition is expected to close by fourth-quarter. On the flipside, revenues from Technology Solutions are expected to be down year over year. Furthermore, stiff competition, currency headwind and reimbursement issues remain 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.”

McKesson Co. (MCK) opened at $148.93 on Monday. The firm has a market cap of $30,730.11, a price-to-earnings ratio of 6.60, a P/E/G ratio of 1.35 and a beta of 1.23. McKesson Co. has a fifty-two week low of $133.82 and a fifty-two week high of $178.86. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.63.

McKesson (NYSE:MCK) last issued its earnings results on Thursday, February 1st. The company reported $3.41 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.92 by $0.49. The business had revenue of $53.62 billion for the quarter, compared to the consensus estimate of $51.98 billion. McKesson had a net margin of 2.34% and a return on equity of 22.98%. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same period in the previous year, the company earned $3.04 earnings per share. analysts anticipate that McKesson Co. will post 12.69 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Monday, April 2nd. Investors of record on Thursday, March 1st will be issued a dividend of $0.34 per share. The ex-dividend date is Wednesday, February 28th. This represents a $1.36 dividend on an annualized basis and a yield of 0.91%. McKesson’s payout ratio is 6.03%.

In related news, Chairman John H. Hammergren sold 65,000 shares of the business’s stock in a transaction on Thursday, December 14th. The shares were sold at an average price of $160.00, for a total transaction of $10,400,000.00. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 1.20% of the stock is currently owned by insiders.

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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