McKesson Corporation's stock experienced a significant surge of 5.84% during Thursday's intraday trading session. The healthcare distribution giant saw strong buying interest following a wave of positive analyst sentiment.
The price movement comes amid multiple analyst firms raising their price targets on McKesson shares. BofA Global Research increased its target to $970 from $950, TD Cowen raised to $1,012 from $1,000, Jefferies lifted to $1,065 from $975, and Wells Fargo boosted to $925 from $914. Several other firms including Leerink Partners, Baird, and Mizuho also raised their price targets, reflecting growing confidence in the company's prospects.
Industry dynamics are also contributing to the positive sentiment, with drug distributors like McKesson benefiting from surging demand for high-margin specialty medicines that treat complex conditions. The sector is riding biosimilar tailwinds from patent cliffs on blockbuster drugs, creating favorable conditions for distribution companies.