Jefferies raises McKesson's PT on medical business IPO, spinoff plans

McKesson

13/10/2025 23:04

** Jefferies raises drug distributor McKesson's MCK.N PT to $900 from $820; retains "buy" rating

** New PT represents a 9.8% upside to the stock's last close

** Brokerage notes the company's IPO plans for its medical business and MCK exit via spinoff by second half of 2027

** Jefferies says the move allows MCK to focus on its more profitable and higher-growth Rx-focused segments

** Brokerage sees risks in Part B drug pricing and lower margins on weight-loss/diabetes drug GLP-1 as manageable compared to overall business momentum

** 15 of 18 analysts rate the stock "buy" or higher, and three "hold"; median PT is $851 — data compiled by LSEG

** As of last close, MCK stock was up ~35% YTD

(Reporting by Anuj T in Bengaluru)

((anuj.t@thomsonreuters.com))