McKesson (NYSE:MCK) Stock Gets Price Target Increase from Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised its McKesson price target from $845 to $965 but kept a “sector perform” rating; the target implied about 11% downside from the stock’s then-current price.
• Analyst sentiment overall was more positive: 15 analysts rated the stock a Buy and four a Hold, for a “Moderate Buy” consensus and an average target of $1,004.18.
• McKesson beat quarterly expectations, reporting EPS of $11.68 versus a $10.72 estimate and revenue of $110.96 billion versus $109.90 billion; revenue grew 7.5% year over year.

McKesson (NYSE:MCK - Get Free Report) had its price objective raised by investment analysts at Royal Bank Of Canada from $845.00 to $965.00 in a report issued on Thursday, Benzinga reports. The firm presently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price suggests a potential downside of 10.98% from the stock's current price.

A number of other equities research analysts have also recently commented on MCK. TD Cowen increased their target price on McKesson from $989.00 to $1,006.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Barclays lifted their price objective on McKesson from $925.00 to $1,000.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 19th. Evercore reissued an "outperform" rating and issued a $950.00 target price (down from $1,000.00) on shares of McKesson in a research note on Thursday, August 6th. Argus upped their target price on shares of McKesson from $850.00 to $970.00 and gave the company a "buy" rating in a report on Thursday, September 3rd. Finally, Wall Street Zen raised shares of McKesson from a "hold" rating to a "buy" rating in a research note on Saturday, October 17th. Fifteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,004.18.

McKesson Stock Performance

NYSE:MCK traded up $14.59 during mid-day trading on Thursday, hitting $1,084.03. 804,091 shares of the company's stock traded hands, compared to its average volume of 917,716. The company has a market cap of $126.39 billion, a PE ratio of 28.97, a price-to-earnings-growth ratio of 1.99 and a beta of 0.27. The firm's 50 day simple moving average is $931.17 and its 200 day simple moving average is $865.74. McKesson has a 1 year low of $723.68 and a 1 year high of $1,121.50.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $11.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.72 by $0.96. The company had revenue of $110.96 billion for the quarter, compared to the consensus estimate of $109.90 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company's revenue for the quarter was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $9.86 earnings per share. On average, research analysts expect that McKesson will post 44.71 earnings per share for the current fiscal year.

Insider Activity

In related news, CAO B Jr sold 111 shares of the company's stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total value of $98,950.95. Following the completion of the transaction, the chief accounting officer directly owned 521 shares in the company, valued at approximately $464,445.45. This represents a 17.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Francisco Fraga sold 800 shares of the stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $995.80, for a total value of $796,640.00. Following the transaction, the executive vice president owned 5,423 shares in the company, valued at $5,400,223.40. This trade represents a 12.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,212 shares of company stock valued at $1,164,182 over the last quarter. Company insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in McKesson during the 2nd quarter worth approximately $8,156,743,000. Bank of America Corp DE raised its position in McKesson by 2.4% in the 1st quarter. Bank of America Corp DE now owns 1,538,726 shares of the company's stock valued at $1,331,552,000 after purchasing an additional 35,916 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in McKesson by 3.3% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 922,573 shares of the company's stock valued at $697,096,000 after purchasing an additional 29,747 shares during the last quarter. Legal & General Group Plc bought a new position in McKesson in the 2nd quarter valued at $656,566,000. Finally, The Manufacturers Life Insurance Company acquired a new position in McKesson in the second quarter worth $651,462,000. Institutional investors and hedge funds own 85.07% of the company's stock.

More McKesson News

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson reported adjusted EPS of $11.68, ahead of analysts’ roughly $10.70–$10.72 estimates, while revenue of $110.96 billion topped expectations of $109.9 billion and grew about 7.5% year over year. MCK Q2 Earnings Beat Estimates on Specialty Growth, Outlook Raised
• Positive Sentiment: The company raised its fiscal 2027 adjusted EPS outlook to $45.60–$46.40. Management cited specialty distribution, higher prescription volumes and GLP-1 momentum as growth drivers. McKesson Corp (MCK) Q2 2027 Earnings Call Highlights
• Positive Sentiment: TD Cowen and Evercore ISI each raised their price target to $1,200, from $1,006 and $1,000, respectively—signaling improved analyst expectations after the results. TD Cowen Adjusts Price Target Evercore ISI Adjusts Price Target
• Neutral Sentiment: McKesson closed its $2.25 billion Precision Medicine Group acquisition, expanding its position in precision medicine. The deal offers growth potential, with execution and integration still to come. McKesson Outlook and Precision Medicine Deal
• Negative Sentiment: Some investors appeared cautious despite the earnings beat, with reports describing an after-hours stock dip. Earlier coverage also flagged branded-drug pricing pressure as a potential headwind. Q2 Earnings and Outlook

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.

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