UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on McKesson Corporation Following Good EPS Results

In a report published Wednesday, Credit Suisse analyst Glen Santangelo reiterated an Outperform rating on McKesson Corporation MCK, and slightly raised the price target from $122.00 to $123.00. In the report, Santangelo noted, “MCK reported EPS of $2.32, $0.02 better than FactSet consensus. More importantly, MCK provided its initial F14 guidance of $7.90-$8.20, which essentially wrapped FactSet consensus of $8.06. However, despite consensus at $8.06 we would suggest that buy-side expectations were a healthy $0.10-$0.15 lower than sell-side consensus. As far as the quarter is concerned, Distribution Solutions performed ahead of our expectations while the Technology Solutions segment came in slightly behind our expectations. Looking at the results in aggregate, we would characterize the quarterly results as relatively in-line and we expect investors will shift their focus primarily to the guidance and the assumptions underpinning the guidance. We expect the results and initial guidance to be viewed positively by investors and expect the shares to continue to grind higher. We are slightly tweaking our estimates and raising our TP to $123 (from $122). Reiterate Outperform.” McKesson Corporation closed on Tuesday at $108.63.