Citi lowered the firm’s price target on McKesson (MCK) to $677 from $713 and keeps a Buy rating on the shares as part of a 2025 outcook for the health technology and distribution group. The firm says that while 2024 was another difficult year for health tech stocks, rather than being driven by deteriorating fundamentals, much of the selloff was due to continued multiple compression, which signals “we have likely reached a valuation floor.” Looking ahead to 2025, Citi is “cautiously optimistic” on the health tech space, saying there seems to be a bit of a post-election risk bid, acquisition activity has accelerated, and expectations have been sufficiently reset. Citi names Health Catalyst (HCAT) its top health tech pick and Cencora (COR) its top distribution pick.
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