Citigroup Maintains Buy, Lowers PT to $99 on McKesson

Citigroup reiterates its Buy rating on McKesson MCK and lowers its target price to $99 from $101 as it trims estimates to reflect layoffs and product transitioning. Citigroup says, “We expect McKesson to take charges related to employee layoffs and product transitioning over the next couple quarters, which may or may not be called out by the company. We also are now lowering our F2012 and F2013 revenue and earnings estimates to reflect lower revenue growth and increased investment. Our F2012 EPS estimate of $6.30 is 2% below our prior estimate of $6.43. Our F2013 EPS estimate of $7.22 is 3% below our prior estimate.” MCK closed at $79.57 per share on Monday.