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Research Alert: CFRA Keeps Buy Opinion On Shares Of Mckesson Corporation

05/10/2021 11:54

03:50 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

As we update our model and our estimates, lifting our price target by $12 to $214, 10.6x our FY 2023 (Mar.) adj. EPS estimate, below MCK's historical forward P/E average of 11.8x. We lift our FY 22 EPS estimate by $0.14 to $19.07 and our FY 23 estimate by $0.17 to $20.28. We think MCK had a challenging quarter in Mar-Q due to the continued negative impact from Covid-19, above our forecast. We expect recovery to take place throughout FY 22 as Covid-19 vaccinations continue to increase both in the U.S and in Europe, positively impacting hospital visits and prescription volumes, in our view. We expect MCK's largest segment, U.S. Pharmaceuticals sales (80% of total revenue), to grow by 5% Y/Y as we expect a gradual return to normal in FY 22.