Goldman Sachs Raises Its Price Target on McKesson to $87 (MCK)

Goldman Sachs is out with its report on McKesson MCK, raising its price target from $84 to $87 due to "solid core business performance." In a note to clients, Goldman Sachs writes, "McKesson reported 3QFY11 EPS of $1.22 (excluding one-time items), which was above our/consensus estimate of $1.14/$1.11, driven by impressive results in the distribution solutions segment. Accordingly, the company raised its FY2011 guidance range to $4.82 to $5.02 (from $4.72 to $4.92). We maintain our Buy rating and our 12-month price target goes to $87 from $84 on increased estimates and model roll-forward." At the time of posting, shares of MCK were trading at $77.20, up 2.70% from Monday's close.