02:35 PM EDT, 05/08/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target $45 to $610, 19.4x our FY 25 (Mar.) adjusted EPS estimate (up $0.61 to $31.45; we start our FY 26 estimate at $35.20), a premium to peers given stronger near-term EPS and dividend growth expectations, in our view, and above MCK's historical average given our view of a strong pharmaceutical volume environment and multiple areas of exposure to the growing biopharma and oncology markets. MCK reported Mar-Q adjusted EPS of $6.18 vs. $7.19, missing consensus by $0.18. U.S. Pharma revenue rose 11.5% Y/Y, supported by GLP-1 drug distribution. MCK pointed out that GLP-1 revenues, while up 23% Y/Y, were flat sequentially, reflecting moderation in volume growth for the popular drug class. Adjusted EBIT margin was 1.65%, down from 1.83% in the prior-year quarter, somewhat reflective of the low-margin nature of GLP-1 distribution, in our view. Supported by the recent Optum contract win, MCK offered a FY 25 U.S. Pharmaceutical sales growth guidance midpoint of 17.5%.