UPDATE: Deutsche Bank Cuts Target on McKesson to $90

Deutsche Bank maintains its Buy rating on McKesson

following a strong earnings report from the company, and lowers its price target by $2 to $90 a share on general renewal pressures. Deutsche Bank says, "We reiterate our Buy rating on MCK following a strong earnings report as well as a $0.10 increase to the FY12 EPS midpoint (ex-charge of ~$0.10 for Horizon product alignment). In the Q, MCK also purchased the Banner and Franchise Businesses of Katz Group Canada, for CAD~920MM (expected to be accretive in first 12mo by ~$0.10 to $0.20). The company also increased its share repurchase authorization to $1.5Bn, displaying a commitment to balanced capital deployment. However, we have decreased our PT to $90 (was $92), reflecting potential renewal uncertainty." MCK closed at $78.69 a share yesterday.