UPDATE: Raymond James Upgrades McKesson Ahead of Potential Acquisition of Celesio
In a report published Wednesday, Raymond James analyst John W. Ransom upgraded the rating on McKesson Corporation (NYSE: MCK) from Market Perform to Outperform, and named a $155.00 price target.
In the report, Raymond James noted, “We are upgrading shares of McKesson to Outperform from Market Perform and setting a $155 price target. We believe the potential acquisition of Celesio could add significantly to the company's earnings growth profile (double digit % EPS accretive) as McKesson reaps generic purchasing savings. Besides Celesio, the company's FY14 guidance looks beatable based on robust branded/generic inflation and likely additional accretion from the PSS World acquisition. Additionally, McKesson's valuation with (14.1x CY14 EPS) or without (14.9x) Celesio is attractive relative to peers (Amerisource at 16.6x CY14 EPS, Cardinal 14.5x CY14 EPS).”
McKesson Corporation closed on Tuesday at $133.72.
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