J.P. Morgan Raises Its Price Target on McKesson to $93 (MCK)

J.P. Morgan is out with its report today on McKesson MCK, raising its price target from $87 to $93. In a note to clients, J.P. Morgan writes, "We are raising our target price to $93 and FY11 EPS to $4.94 from our previous estimate of $4.75, primarily due to the strong results seen this quarter. We now expect 4FQ11 EPS of $1.59, up from $1.55. MCK raised guidance to $4.82-$5.02 from $4.72-$4.92. MCK trades at 13.8x our CY11 EPS estimate of $5.46, a slight discount to peers. We view the discount as unwarranted given the solid earnings track record of beating earnings and higher growth prospects for the HCIT business." J.P. Morgan reiterates Overweight on MCK. Shares of MCK closed Monday at $75.17, up 1.38% from Friday's close.