UPDATE: Deutsche Bank Initiates Coverage on McKesson Corporation with Buy Rating, $181 PT on Multiple Levers for Earnings Growth

In a report published Thursday, Deutsche Bank analyst George Hill initiated coverage on

with a Buy rating and $181.00 price target. In the report, Deutsche Bank noted, “We are initiating coverage of McKesson as our preferred name among the drug wholesalers. We feel comfortable with near to medium term earnings estimates as the company has many earnings levers to pull on including synergies from the PSS deal, the recent Celesio deal, the potential for future transactions, deleverage, share repurchases. Additionally, tailwinds from the generic launch cycle should serve as a tailwind to earnings growth in 2014, 2015 and 2016, likely meaning McKesson can deliver EPS growth of greater than 15% through C2017.” McKesson Corporation closed on Wednesday at $158.39.