On August 22, McKesson rose 3.01% in regular trading, trading at approximately $864.14/share, with turnover of $610 million.
The rally was driven by a wave of investment bank price target upgrades following strong fiscal Q1 results. Barclays raised its target to $1,000 from $925 while maintaining an Overweight rating, BofA Securities lifted its target to $1,050, and Wells Fargo adjusted to $933. McKesson reported fiscal Q1 adjusted EPS of $9.93, beating the consensus estimate of $9.54 by 4.09% and representing a 20.22% year-over-year increase. Revenue of $105.38 billion also exceeded the $103.88 billion estimate. The company raised its fiscal 2027 adjusted EPS guidance to $44.20-$45.00, above the prior range of $43.80-$44.60.
Additionally, RBC Capital Markets noted that McKesson's specialty drug exposure and integrated business model should help offset regulatory pricing pressure, projecting specialty drugs to exceed 55% of total drug spending by 2028, with biosimilar introductions potentially adding $250 million in operating income.
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