McKesson price target raised to $642, named a ‘Top Pick’ at Morgan Stanley

Morgan Stanley analyst Erin Wright raised the firm’s price target on McKesson (MCK) to $642 from $612 and keeps an Overweight rating on the shares, which has been named “Top Pick” in its group, replacing UnitedHealth (UNH). Diversified Managed Care “woefully underperformed” in 2024 and while uncertainty is pressuring sentiment, the firm sees “opportunities in a friendlier policy backdrop,” the analyst tells investors in a 2025 outlook note on the healthcare services group. Drug distributors “have rightfully been viewed as relative safe havens” and the firm thinks stocks in the group can continue to “grind higher,” the analyst added.