Bank of America Sees Upside in McKesson (MCK) Biosimilar Push, Raises Target to $1,040

McKesson Corporation (NYSE:MCK) is included among the 14 Best American Dividend Stocks to Invest in.

On March 6, Bank of America raised its price recommendation on McKesson Corporation (NYSE:MCK) to $1,040 from $970. It reiterated a Buy rating on the shares. The firm noted that McKesson recently received a new National Drug Code for a biosimilar version of Neulasta. The approval came a few weeks ago and did not attract much attention at first. Some investors remain skeptical about McKesson’s ambitions in this area. The firm said that the reaction may be premature.

In its view, the market may be overlooking the opportunity tied to several large biosimilars expected to launch over the next few years. Seven are anticipated to reach the market, including four that McKesson could address directly. The firm said this outlook supports the possibility that the company could benefit from co-manufacturing arrangements as the biosimilar market expands. It raised its McKesson price target to reflect that optionality. The firm also lifted its target on Cencora to account for similar opportunities.

McKesson Corporation (NYSE:MCK) is a diversified healthcare services company focused on advancing health outcomes for patients. Its U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, along with other healthcare-related products across the United States.

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