Barclays Resumes McKesson (MCK) at Overweight, Stock At Inflection Point

Barclays resumes coverage on McKesson (NYSE: MCK) with a Overweight rating and a price target of $174.00.

Analyst Eric Percher see four catalysts that could drive multiple expansion:

1. FY18 guidance of $10.90-11.40 or greater should provide a floor to build off of
2. independent pharmacy channel stability should relieve ongoing concerns when results are reported in July and October;
3. modest midyear brand price increases should lead to steady inflation of 8-9%; and
4. continued progress against MCK’s multi-year strategic initiatives at McKesson Technology Solutions/MIS should create incremental shareholder value.

He issues FY 2017 EPS estimate of $12.43 and FY 2018 EPS estimate of $11.15

For an analyst ratings summary and ratings history on McKesson click here. For more ratings news on McKesson click here.

Shares of McKesson closed at $135.00 yesterday.

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