Avondale Sees McKesson Corporation 'Stabilizing'


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Avondale Partners lifted McKesson Corporation

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(NYSE: MCK)'s price target from $172 to $197. In its report published Tuesday, the analysts stated they believe the company is stabilizing, noting that it is still too early to make a conclusion because of macro factors.

"Operational excellence was the key theme across all of MCK's businesses, and we could sense a strong feeling of confidence exuded by management surrounding the growth opportunities for Distribution Solutions," wrote Avondale.

The analysts kept their Market Perform rating unchanged and are waiting for concrete evidence concerning stabilized operations to reevaluate their estimates and price target. They stated several aspects concerning the company's growth beyond fiscal 2017 year, including:

  • The company will partially offset some of the larger customer losses (i.e., Rite Aid).
  • Reversion in generic prices should largely dissipate.
  • Higher specialty drug mix will drive DS operating profit dollar growth, albeit more in-line with revenue growth.

At time of writing, McKesson was trading down 0.47 percent on the day at $187.22.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorBiotechLong IdeasHealth CarePrice TargetAnalyst RatingsTrading IdeasGeneralAvondale Partners