McKesson Corp (MCK) Outlook Brightens as Analyst Maintains Strong Buy Rating

McKesson Corp (NYSE: MCK) received a vote of confidence from analyst David Toung at Argus Research, who maintained a Strong Buy rating on the stock. In addition, Toung raised the price target on McKesson from $430.00 to $450.00, reflecting a 4.7% increase.

According to Toung, there are three key factors contributing to McKesson's positive outlook. Firstly, there is a recovery in visits to physicians' offices, which indicates a rebound in healthcare utilization. Secondly, there is growth expected in elective surgical procedures, suggesting an increase in medical interventions. Finally, McKesson's Q4 2023 results across all three of its segments were deemed "solid" by the analyst.

Toung also highlighted that McKesson projects strong growth in its core businesses for FY 2024, excluding COVID-related sales. As the contracts with the U.S. government related to COVID-19 are set to end in July 2023, the company anticipates robust expansion in its core operations moving forward.

McKesson Corporation is a prominent player in the distribution of pharmaceutical drugs and other healthcare-related products in the United States and globally. The company also offers various services such as practice management, technology solutions, clinical support, and consulting services to specialty practices and pharmacies. Established in 1833 and headquartered in Irving, TX, McKesson has a long-standing presence in the industry.

The positive outlook from Argus Research provides investors with additional confidence in McKesson Corp's future potential. With a Strong Buy rating and an increased price target, Toung's analysis suggests that McKesson is well-positioned to capitalize on the recovery in the healthcare sector and drive growth in its core businesses in the coming year.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.