McKesson stock price target raised to $860 from $820 at UBS on growth outlook

Investing.com - UBS raised its price target on McKesson (NYSE:MCK) to $860.00 from $820.00 on Wednesday, while maintaining a Buy rating on the healthcare services company. The stock, currently trading at $762.31 with a market capitalization of $94.61 billion, has demonstrated remarkable strength with a 55% return over the past year. According to InvestingPro analysis, McKesson maintains a "GREAT" financial health score of 3.17 out of 5.

The price target increase follows McKesson’s analyst day held Tuesday in New York City, where the company showcased its strong cash flow conversion and strategy of reinvesting in growth markets while divesting underperforming assets. This strategic approach has contributed to impressive revenue growth of 20.35% over the last twelve months. For deeper insights into McKesson’s performance metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

UBS noted that McKesson’s RxTS segment appears to be driving near-term outperformance, which has positively impacted the company’s fiscal year 2026 outlook.

The firm highlighted McKesson’s bullish stance on GLP-1 profits, with the company reporting 30%+ growth in this area and expressing enthusiasm for additional opportunities in oral solid medications.

McKesson also provided new disclosure on its specialty business through re-segmented reporting and comments on market share, which UBS viewed as part of the "slew of positive surprises" presented at the analyst event.

In other recent news, McKesson has been the focus of several analyst updates and strategic announcements. Mizuho raised its price target for McKesson to $770, noting the company’s increased long-term EPS growth guidance from 13-16%, which was highlighted during McKesson’s Investor Day. Leerink Partners also increased its price target to $850, citing robust growth in McKesson’s pharmaceutical segments, including North America Pharma and Oncology & Multispecialty. Meanwhile, Jefferies lowered its price target to $84, mentioning tariff and geopolitical pressures but maintained a Buy rating due to the company’s consistent fiscal year guidance. UBS adjusted its price target to $79, maintaining a Neutral rating while commenting on McKesson’s capital allocation strategy.

In addition to analyst updates, McKesson announced a reorganization of its reportable segments, effective in the second quarter of fiscal year 2026. The company will restructure into five segments: North American Pharmaceutical, Oncology and Multispecialty, Prescription Technology Solutions, Medical-Surgical Solutions, and Other. This restructuring aims to enhance strategic alignment and transparency, with the "Other" segment including Norwegian operations under a definitive sale agreement. These developments reflect McKesson’s ongoing efforts to adapt to market dynamics and optimize its business structure.

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