JP Morgan Analyst Raises Mckesson Price Target and Maintains Strong Buy Rating

JP Morgan's Lisa Gill raised their price target on Mckesson (NYSE: MCK) by 3.8% from $495 to $514 on 2023/11/17. The analyst maintained their Strong Buy rating on the stock.

According to the analyst, the price target hike was a result of an updated assessment of names in their healthcare services portfolio after the Q3 earnings season. Gill informed investors that the setup for the managed care group in FY 2024 appears "more varied and complicated" following the Q3 reports.

The analyst highlighted that Medicaid looks "more ownable," but emphasized that Q4 will be a crucial confirmation point. Gill also mentioned the reemergence of concerns regarding Medicare Advantage utilization and speculation of a potential last managed care mega-merger.

Gill stated, "Generally speaking, diversified managed care operators remain better choices at this stage when we look at things from a purely fundamental perspective."

In addition to the update on Mckesson, Gill made changes to other names in their portfolio on November 17, 2023:

- Lisa Gill raised the price target on Cardinal Health Inc by 10.9%, from $101 to $112, while maintaining a Hold rating. - Lisa Gill lowered the price target on Humana Inc by -3%, from $593 to $575, while also maintaining a Hold rating. - Lisa Gill lowered the price target on Lifestance Health Group Inc by -20%, from $10 to $8, while maintaining a Hold rating. - Lisa Gill lowered the price target on Privia Health Group Inc by -11.6%, from $43 to $38, while maintaining a Strong Buy rating. - Lisa Gill lowered the price target on Teladoc Health Inc by -42.4%, from $33 to $19, while maintaining a Hold rating.

The analyst's rating on Mckesson aligns with the consensus among top-rated analysts, with 80% viewing the stock as a Strong Buy or Buy and the remaining 20% considering it a Hold. No analysts recommend or strongly recommend selling the stock.

Analysts forecast that Mckesson's upcoming year will deliver earnings per share (EPS) of $26.58. If the analysts' predictions hold true, this would represent a 4.2% increase in yearly EPS on a year-over-year basis.

Mckesson's stock price has seen positive movement since its last quarterly report on September 30, 2023, with a 3.7% increase. On a year-over-year basis, the stock has surged by 24.1%. During this period, Mckesson has outperformed the S&P 500, which has shown a 14% increase.

JP Morgan analyst Lisa Gill is ranked in the top 18% of Wall Street analysts by WallStreetZen, with an average return of 7.4% and a win rate of 42.9%. Gill specializes in the Healthcare and Consumer Defensive sectors.

McKesson Corporation, founded in 1833 and headquartered in Irving, TX, is a leading distributor of branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products in the U.S. and internationally. The company also offers practice management, technology, clinical support, and business solutions to oncology and other specialty practices, along with consulting services to pharmacies.

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