McKesson price target lowered to $570 from $640 at Argus

Argus lowered the firm’s price target on McKesson to $570 from $640 and keeps a Buy rating on the shares. The company is riding the tailwinds of higher utilization of specialty and oncology drugs and higher volumes of GLP- 1 drugs while also redeploying capital into its core growth strategy, which includes divesting its European and Canadian retail operations, and focusing on M&A such as the recent acquisition of oncology distribution networks, the analyst tells investors in a research note. Argus adds however that its reduced price target reflects the negative impact of higher interest rates on equity valuations.