UPDATE: ISI Group Reiterates Overweight Rating, Raises PT on McKesson Corporation
In a report published Friday, ISI Group reiterated its Overweight rating on McKesson Corporation (NYSE: MCK), and slightly raised its price target from $104.00 to $104.50.
ISI Group noted, “McKesson posted solid 1Q results, with strength broad across the platform and reiterated its financial goals for FY13 (EPS of 7.05-$7.35; cash flow of $2.0-$2.5Bn). Distribution Solutions continued its strong performance, reflecting new business with existing customers, while Technology Solutions showed sequential improvement with OMs up ~70bps. Management continues to see improving profitability in TS in the second half of FY13, with margins for the year approaching the low-end of their long-term target (mid-teens). Additionally, we continue to highlight the company's robust balance sheet/debt capability and anticipate further value enhancing capital deployment events over the next 12mo. In total, MCK reported one of the cleanest Qs within all of our universes and we look for its consistently strong business model to outperform in this challenging macro environment and thus reiterate our Overweight rating.”
McKesson Corporation closed on Thursday at $92.26.
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