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 note issued to investors on Wednesday. The brokerage currently has a $164.00 price objective on the stock. Zacks Investment Research‘s price target indicates a potential upside of 11.84% from the stock’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.”
Several other brokerages have also recently commented on MCK. Credit Suisse Group restated a “sell” rating and set a $130.00 price objective on shares of McKesson in a research note on Friday, February 2nd. Mizuho decreased their price objective on shares of McKesson from $186.00 to $179.00 and set a “neutral” rating for the company in a research note on Friday, February 2nd. Jefferies Group upgraded shares of McKesson from a “hold” rating to a “buy” rating and set a $205.00 price objective for the company in a research note on Wednesday, January 24th. Needham & Company LLC lifted their price objective on shares of McKesson from $173.00 to $180.00 and gave the company a “buy” rating in a research note on Tuesday, January 23rd. Finally, Robert W. Baird restated a “buy” rating and set a $200.00 price objective on shares of McKesson in a research note on Wednesday, January 17th. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating and eleven have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $177.50.
McKesson (NYSE:MCK) last released its earnings results on Thursday, February 1st. The company reported $3.41 EPS for the quarter, topping analysts’ consensus estimates of $2.92 by $0.49. The company had revenue of $53.62 billion during the quarter, compared to analysts’ expectations of $51.98 billion. McKesson had a net margin of 2.34% and a return on equity of 22.98%. McKesson’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same period last year, the business earned $3.04 EPS. sell-side analysts anticipate that McKesson will post 12.71 earnings per share for the current year.
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 value of $10,400,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 1.20% of the company’s stock.
Institutional investors and hedge funds have recently bought and sold shares of the stock. Icon Wealth Partners LLC acquired a new position in shares of McKesson in the 4th quarter valued at $111,000. WFG Advisors LP lifted its stake in shares of McKesson by 5.0% in the 2nd quarter. WFG Advisors LP now owns 859 shares of the company’s stock valued at $141,000 after purchasing an additional 41 shares during the period. Wealthcare Advisory Partners LLC acquired a new position in shares of McKesson in the 3rd quarter valued at $155,000. Focused Wealth Management Inc lifted its stake in shares of McKesson by 650.0% in the 4th quarter. Focused Wealth Management Inc now owns 1,200 shares of the company’s stock valued at $187,000 after purchasing an additional 1,040 shares during the period. Finally, Community Financial Services Group LLC acquired a new position in shares of McKesson in the 4th quarter valued at $204,000. Hedge funds and other institutional investors own 86.63% of the company’s stock.
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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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