McKesson (NYSE:MCK) Stock Gets Price Target Boost from UBS Group

Key Points

• UBS raised its McKesson price target to $1,250 from $1,200 and maintained a Buy rating, implying 16.24% upside from the prior close.
• Analyst sentiment is broadly positive: 15 analysts rate the stock Buy and four Hold, for a Moderate Buy consensus and an average target of $1,026.18.
• McKesson beat quarterly expectations, reporting EPS of $11.68 and revenue of $110.96 billion; revenue increased 7.5% year over year.

McKesson (NYSE:MCK - Get Free Report) had its price target boosted by investment analysts at UBS Group from $1,200.00 to $1,250.00 in a report released on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. UBS Group's price objective indicates a potential upside of 16.24% from the stock's previous close.

A number of other brokerages have also recently issued reports on MCK. Morgan Stanley set a $977.00 price objective on shares of McKesson in a report on Tuesday, October 6th. Wells Fargo & Company increased their target price on shares of McKesson from $812.00 to $933.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 11th. Wall Street Zen raised shares of McKesson from a "hold" rating to a "buy" rating in a research report on Saturday, October 17th. Bank of America boosted their price target on shares of McKesson from $950.00 to $1,050.00 in a report on Thursday, August 6th. Finally, Argus upped their price objective on shares of McKesson from $850.00 to $970.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. Fifteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $1,026.18.

McKesson Trading Up 0.6%

Shares of MCK opened at $1,075.38 on Thursday. McKesson has a 1 year low of $723.68 and a 1 year high of $1,121.50. The stock has a market cap of $125.38 billion, a P/E ratio of 27.65, a price-to-earnings-growth ratio of 2.13 and a beta of 0.27. The stock's 50-day moving average price is $934.72 and its two-hundred day moving average price is $866.92.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $11.68 EPS for the quarter, beating analysts' consensus estimates of $10.72 by $0.96. The company had revenue of $110.96 billion during the quarter, compared to analysts' expectations of $109.90 billion. McKesson had a negative return on equity of 235.48% and a net margin of 1.12%. McKesson's revenue was up 7.5% on a year-over-year basis. During the same period in the prior year, the business posted $9.86 EPS. As a group, equities analysts forecast that McKesson will post 44.71 EPS for the current year.

Insider Buying and Selling

In other McKesson news, Director Bradley Lerman sold 301 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $892.33, for a total transaction of $268,591.33. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Francisco Fraga sold 600 shares of McKesson stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $1,050.00, for a total transaction of $630,000.00. Following the completion of the transaction, the executive vice president directly owned 5,064 shares in the company, valued at approximately $5,317,200. The trade was a 10.59% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 1,812 shares of company stock valued at $1,794,182. 0.06% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On McKesson

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. King Luther Capital Management Corp grew its holdings in McKesson by 1.6% during the 3rd quarter. King Luther Capital Management Corp now owns 49,889 shares of the company's stock worth $42,596,000 after acquiring an additional 793 shares during the last quarter. Bingham Private Wealth LLC increased its position in McKesson by 4.2% in the 3rd quarter. Bingham Private Wealth LLC now owns 577 shares of the company's stock valued at $493,000 after acquiring an additional 23 shares during the period. Maryland State Retirement & Pension System raised its stake in shares of McKesson by 7.9% during the third quarter. Maryland State Retirement & Pension System now owns 7,190 shares of the company's stock valued at $6,139,000 after acquiring an additional 527 shares during the last quarter. Ritholtz Wealth Management raised its stake in shares of McKesson by 6.3% during the third quarter. Ritholtz Wealth Management now owns 14,918 shares of the company's stock valued at $12,737,000 after acquiring an additional 887 shares during the last quarter. Finally, UNIVEST FINANCIAL Corp raised its stake in shares of McKesson by 4.3% during the third quarter. UNIVEST FINANCIAL Corp now owns 675 shares of the company's stock valued at $576,000 after acquiring an additional 28 shares during the last quarter. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson reported adjusted EPS of $11.68, above analyst expectations of roughly $10.70, on revenue of $110.96 billion versus estimates of $109.9 billion. Revenue grew about 7.5% year over year. MCK Q2 Earnings Beat Estimates on Specialty Growth, Outlook Raised
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $45.60–$46.40. Specialty-drug demand, GLP-1 distribution, higher prescription volumes and operating gains supported the outlook; McKesson also closed its $2.25 billion Precision Medicine Group acquisition, expanding its healthcare services business. McKesson Q2 2027 Earnings Call Highlights
• Positive Sentiment: Analyst sentiment was broadly constructive: TD Cowen, Leerink Partners and Evercore ISI raised price targets to $1,200, while Deutsche Bank lifted its target to $1,120. RBC also praised McKesson’s execution. TD Cowen Raises McKesson Price Target
• Neutral Sentiment: EVP Francisco Fraga sold 600 shares under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards, retaining 5,064 shares. SEC Filing
• Negative Sentiment: RBC’s “sector perform” rating and $965 price target—despite an increase from its prior target—indicate a more cautious view and imply downside from the recent share price. RBC on McKesson’s Execution

About McKesson

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and medical products to pharmacies, hospitals, health systems, physicians and other healthcare providers. The company also provides technology, data and business solutions designed to support prescription management, pharmacy operations and patient care.

McKesson's principal activities include pharmaceutical distribution, medical-surgical supply distribution, specialty pharmaceutical services and oncology care support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.