McKesson stock price target raised to $770 from $750 at Mizuho

Investing.com - Mizuho has raised its price target on McKesson (NYSE:MCK) to $770.00 from $750.00 while maintaining a Neutral rating on the stock. The healthcare giant, currently trading at $741.31 and boasting a market capitalization of $92.21 billion, is trading near its 52-week high of $748.75. According to InvestingPro analysis, the stock appears to be fairly valued at current levels.

The price target increase follows McKesson’s Investor Day, where management raised its long-term EPS growth guidance from 12-14% to 13-16%, addressing investor concerns about potential industry slowdown. The company’s strong momentum is reflected in its impressive 54.97% return over the past year. InvestingPro data shows the company maintains a "GREAT" overall financial health score, with particularly strong marks in profit and price momentum metrics.

McKesson also raised its fiscal year 2026 adjusted EPS guidance to $38.05-38.55 from $37.10-37.90, representing 15-17% year-over-year growth, driven primarily by higher EBIT growth of 10-14% in the RxTS and Oncology & Multi-Specialty segments.

The company’s new North American Pharmaceutical reporting segment, which now includes Canada, contains a significant portion of McKesson’s approximately $90 billion in complex/high-dollar Specialty Distribution revenues, contributing to the 5-8% long-term EBIT growth guidance for North American Pharma.

McKesson has targeted the second half of 2027 for completion of its Med-Surg business spin-off, which Mizuho noted was a slightly longer timeline than expected.

In other recent news, McKesson Corporation reported its first-quarter fiscal year 2026 earnings, surpassing Wall Street expectations. The company achieved an earnings per share of $8.26, exceeding the forecasted $8.19, and reported revenue of $97.8 billion, outpacing the anticipated $95.82 billion. Additionally, McKesson announced a reorganization of its reportable segments effective in the second quarter of fiscal year 2026, which aims to enhance strategic alignment and transparency. The restructuring will divide the company into five segments, including North American Pharmaceutical and Oncology and Multispecialty.

Analyst firms have also adjusted their outlook on McKesson. Leerink Partners raised its price target for McKesson to $850 from $785, citing better-than-expected growth dynamics in its pharmaceutical segments. Meanwhile, Jefferies lowered its price target to $84 from $90 due to tariff and geopolitical pressures, though it maintained a Buy rating. UBS also reduced its price target to $79 from $83, maintaining a Neutral rating while noting the company’s solid capital allocation strategy. These developments reflect a mix of optimism and caution among analysts regarding McKesson’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.