McKesson's Fiscal 2027 Guidance 'Encouraging,' Cencora Selloff Overdone, Morgan Stanley Says

MT Newswires Live05-08

McKesson's (MCK) fiscal 2027 guidance is "encouraging," and its commentary on biosimilars should help ease recent pressure on drug distributors, Morgan Stanley said in a Friday note.

The investment firm said McKesson's targets and underlying assumptions support their bullish outlook on distributors that continue to benefit from structural tailwinds.

On Cencora (COR), the brokerage said the company faces idiosyncratic contract dynamics with Express Scripts that could lead to continued insourcing of biosimilar specialty drugs and add an overhang to the stock. The recent pullback in Cencora shares was overdone, according to the note.

Morgan Stanley raised their fiscal 2026 adjusted earnings estimate on Cencora to $17.76 from $17.63. Analysts surveyed by FactSet expect $17.73.

Morgan Stanley has an overweight rating and a $966 price target on McKesson.

The firm reiterated its overweight rating on Cencora and lowered its price target to $342 from $400.

Price: 265.08, Change: +9.42, Percent Change: +3.68

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment