McKesson Corporation (NYSE: NYSE:) Maintains Buy Rating and $652.00 Price Target from TD Cowen
McKesson Corporation has received an affirmation of its Buy rating and a price target of $652.00 from TD Cowen following its announcement of acquiring a controlling interest in Core Ventures. This strategic move is expected to enhance McKesson's procurement operations in the specialty Part B sector, driving potential growth opportunities.
Analysts believe the implied $3.6 billion valuation for Core Ventures is justified due to its scale and geographic reach, positioning the acquisition as a significant market expansion and service integration for McKesson. Financial projections suggest a positive impact on McKesson's adjusted earnings per share, with estimates showing an increase of approximately 1% for fiscal year 2025 and 2% for fiscal year 2026.
In recent news, McKesson reported strong first-quarter revenues of $79.3 billion for fiscal 2025, a 6% increase from the previous year. The company also raised its full-year adjusted EPS guidance, increased its quarterly dividend by 15%, and approved an additional $4 billion for share repurchases, bringing the total authorization to around $10 billion.
With a recent 70% stake acquisition in Core Ventures, McKesson aims to enhance its capabilities in the healthcare industry, particularly in the management and support of cancer care services. By integrating Core Ventures into its Oncology platform, McKesson seeks to support community-based providers and improve access to quality care in Florida.
In conclusion, McKesson's strategic acquisitions and strong financial performance indicate a positive outlook for the company's growth and market position. Investors may consider the potential for increased value and earnings from McKesson's expansion in the healthcare sector, driven by its recent acquisitions and operational enhancements.