McKesson (MCK) Lifted to Buy at Zacks Investment Research

McKesson (NYSE:MCK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday. The firm presently has a $164.00 price target on the stock. Zacks Investment Research‘s price target suggests a potential upside of 11.84% from the company’s previous close.

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.”

MCK has been the topic of several other reports. Needham & Company LLC reiterated a “buy” rating and issued a $173.00 price objective (down from $178.00) on shares of McKesson in a research note on Wednesday, November 1st. ValuEngine lowered McKesson from a “buy” rating to a “hold” rating in a research report on Sunday, December 31st. Jefferies Group set a $165.00 price target on McKesson and gave the stock a “hold” rating in a research report on Wednesday, October 18th. Evercore ISI assumed coverage on McKesson in a research report on Thursday, January 4th. They set an “outperform” rating and a $179.00 price target on the stock. Finally, Deutsche Bank assumed coverage on McKesson in a research report on Monday, December 4th. They set a “buy” rating and a $175.00 price target on the stock. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating and eleven have given a buy rating to the company. McKesson presently has a consensus rating of “Hold” and an average price target of $177.50.

Shares of McKesson (NYSE MCK) traded up $0.46 on Wednesday, reaching $146.64. The company had a trading volume of 460,745 shares, compared to its average volume of 1,843,033. McKesson has a 1 year low of $133.82 and a 1 year high of $178.86. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.63. The company has a market capitalization of $30,748.68, a price-to-earnings ratio of 6.50, a price-to-earnings-growth ratio of 1.35 and a beta of 1.23.

McKesson (NYSE:MCK) last released its quarterly earnings data on Thursday, February 1st. The company reported $3.41 earnings per share 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 company had revenue of $53.62 billion for the quarter, compared to analyst estimates of $51.98 billion. During the same period in the prior year, the company posted $3.04 EPS. The company’s revenue was up 7.0% compared to the same quarter last year. equities research analysts expect 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 on Thursday, December 14th. The stock was sold at an average price of $160.00, for a total transaction of $10,400,000.00. The transaction was disclosed in a filing with the SEC, which is available at this link. 1.20% of the stock is currently owned by corporate insiders.

Several hedge funds have recently bought and sold shares of the company. Beacon Capital Management acquired a new stake in McKesson during the 4th quarter worth $0. Family Firm Inc. increased its holdings in McKesson by 0.3% during the 2nd quarter. Family Firm Inc. now owns 1,922 shares of the company’s stock worth $316,000 after purchasing an additional 5 shares in the last quarter. Gilman Hill Asset Management LLC increased its holdings in McKesson by 0.4% during the 2nd quarter. Gilman Hill Asset Management LLC now owns 1,657 shares of the company’s stock worth $309,000 after purchasing an additional 7 shares in the last quarter. Nadler Financial Group Inc. increased its holdings in McKesson by 0.5% during the 3rd quarter. Nadler Financial Group Inc. now owns 1,337 shares of the company’s stock worth $223,000 after purchasing an additional 7 shares in the last quarter. Finally, Pitcairn Co. increased its holdings in McKesson by 0.6% during the 2nd quarter. Pitcairn Co. now owns 1,516 shares of the company’s stock worth $283,000 after purchasing an additional 9 shares in the last quarter. 86.63% of the stock is currently owned by institutional investors.

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About McKesson

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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