Goldman Says Buy McKesson Corp. (MCK)

Goldman Sachs has a Buy rating and a $94 price target on shares of McKesson Corp. MCK. In the research note, Goldman writes, "We have removed the NR designation the Americas Buy List with 12-month price target of $84 (14% upside). We have long viewed specialty distribution as the most attractive secondary market that the three large wholesalers participate in. Our attraction to specialty distribution is two-fold: (1) we see upside near term from specialty generics (i.e., Gemzar and Taxotere) and (2) we believe the branded specialty pipeline (particularly oncology) will drive top- and bottom-line growth over the next 3-5 years. We like the acquisition of US Oncology (USON) which by our estimation gives McKesson 25% of the specialty distribution market." Shares of MCK lost 86 cents on Friday to close at $74.00.