McKesson Corporation (MCK) Maintains An Outperform Rating

Analyst Charles Rhyee at Oppenheimer (NYSE: OPY) has maintained an Outperform rating for McKesson Corporation (NYSE: MCK).

The company currently has $3.4 billion in cash, which Oppenheimer believes it can use for acquisitions or share repurchases. According to Oppenheimer, the market has not sufficiently recognized this.

The shares of McKesson Corporation are trading at a discount to its peers, according to Oppenheimer. Oppenheimer believes that the investors are too narrowly focused on expectations for FY11.

According to Oppenheimer, the FY11 guidance could provide an upside in the near-term, but in the long term the upside will only come from an accretive use of cash.