Research Alert: CFRA Maintains Buy View On Shares Of Mckesson Corporation

01:05 AM EDT, 03/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $65 to $750, 20.3x our FY 26 (Mar.) adj. EPS view (up $0.07 to $36.87; FY 25 remains at $32.76), a premium to peers and MCK's historical average based on stronger near-term growth expectations. Health care distributors remain one of the top performing sub-industries within the sector YTD, which we attribute in part to the defensive nature of the business as well as sales growth momentum from GLP-1 drug distribution. MCK and its peers trade above historical forward averages, making the shares appear pricey, but we see multiple reasons to justify the premium multiple, including margin stability, strong pharmaceutical volumes, accretion from recent acquisitions (such as MCK's investments in PRISM Vision and Community Oncology Revitalization Enterprise Ventures), and healthy FCF levels supporting continued share repurchases and two recent 15% dividend hikes. Finally, we view near-term EPS growth as attractive (~13% CAGR from FY 25 to FY 28, in line with MCK's long-term guidance).

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.