Auriga Maintains Buy, $95 Target on McKesson

Auriga reiterates its Buy rating and $95 target price on McKesson NYSE: MCK) on share buyback, acquisition activity, and a strong quarter where results outpaced consensus estimates.

Auriga says, "McKesson's portfolio approach to capital deployment was evidenced in the quarter as it: 1) announced the $918 million acquisition of Katz Groups' banner and franchised pharmacy operations, and 2) increased its share buyback authorization by $650 million. While some headwinds are surfacing as the fiscal year winds down, in the form of the Veterans Administration renewal, for one, we think the recent weakness in MCK shares more than reflects the risks."

MCK closed at $78.69 a share on Monday.