Wells Fargo Raises McKesson (MCK) Price Target, Maintains Equal Weight Rating

Wells Fargo raised its price target on McKesson Corporation (NYSE:MCK) to $766 from $691, on June 3, while maintaining an Equal Weight rating, following the company’s fourth-quarter earnings report and newly issued fiscal 2026 guidance. The move reflects adjustments to the firm’s financial model in light of McKesson’s latest performance and outlook.

Redburn Raises McKesson (MCK) Price Target, Maintains Equal Weight Rating

A successful pharmacist in front of shelves of drugs in a community-based oncology pharmacy.

Analyst Stephen Baxter acknowledged the company’s solid execution and clarity on long-term growth plans but remains cautious due to valuation concerns. McKesson Corporation (NYSE:MCK) trades at a premium compared to peers, a factor that continues to temper Wells Fargo’s enthusiasm. The updated target incorporates McKesson’s revised earnings framework, which includes expectations for stable revenue growth and margin expansion in key segments such as pharmaceuticals and medical-surgical distribution. The firm sees the company benefiting from structural demand drivers, including the aging population and increasing complexity in healthcare logistics.

However, Wells Fargo also flagged the potential impact of sector-specific risks. These include policy-related uncertainties and broader macroeconomic headwinds that could create pressure on sentiment or profitability in the coming quarters. While recognizing McKesson’s track record of disciplined capital allocation and shareholder returns, the firm remains neutral, citing limited room for upside without a broader sector re-rating. The latest valuation adjustment aligns with a balanced view that acknowledges both the company’s strengths and the challenges it faces within the current healthcare landscape.

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