SKN | Barclays Boosts McKesson Corporation Price Target, Says Shares Likely to Stay in Favor

Key Takeaways

• McKesson Corporation price target raised to $1,050 from $960 by Barclays.
• Overweight rating maintained as analysts highlight defensive positioning within the healthcare sector.
• Shares trade near a 15% premium to their three-year average valuation multiple.
• Completion of European exit sharpens focus on core U.S. growth platforms.
• Target Raised as Defensive Appeal Strengthens

Barclays increased its valuation target on McKesson, arguing the stock is likely to remain in favor as investors rotate toward defensive healthcare stocks amid macroeconomic uncertainty.

During periods of market volatility, healthcare distribution and medical supply chain companies often attract investor capital due to stable demand, recurring revenue visibility, and essential infrastructure roles. McKesson’s scale, logistics network, and integration across pharmaceutical distribution strengthen its defensive investment profile.

Valuation Premium Now Embedded

While maintaining a constructive outlook, Barclays noted that McKesson stock is currently trading at roughly a 15% premium to its three-year historical average valuation multiple.

That premium suggests a portion of the defensive healthcare narrative may already be priced in. From here, additional upside may rely more on earnings growth, margin expansion, and disciplined capital allocation rather than further multiple expansion.

European Exit Completed

McKesson recently confirmed the sale of its Norway retail and distribution operations to NorgesGruppen, officially completing its exit from European markets.

This divestiture marks the final phase of a broader corporate restructuring strategy aimed at streamlining operations and concentrating resources on higher-return U.S. healthcare services and distribution businesses. A more focused geographic footprint could enhance operational efficiency and capital deployment.

Strategic Focus on Higher-Growth Segments

Management has identified Oncology, Multispecialty, and Biopharma Services as key long-term growth platforms. These segments typically offer stronger structural growth trends and higher operating margins compared to traditional wholesale pharmaceutical distribution.

By directing investment and capital toward these higher-growth healthcare segments, McKesson aims to improve return on invested capital and strengthen long-term earnings durability.

Outlook

With a higher price target and reaffirmed Overweight rating, McKesson continues to stand out as a favored defensive healthcare stock within the broader U.S. equity market.

Sustained investor confidence will likely depend on consistent earnings execution, margin resilience, and tangible evidence that portfolio simplification translates into stronger financial performance and shareholder value creation.

For confidential consultations on Barclay’s healthcare distribution valuation strategy, defensive equity allocation frameworks, and capital optimization within U.S. healthcare services platforms, our senior advisory team remains available to provide discreet, institution-grade guidance tailored to cross-border mandates.