Deutsche Bank upgraded MCK to "buy" from "hold"
The shares of McKesson Corporation (NYSE:MCK) are up 1% at $161.48 at last check, after an upgrade from Deutsche Bank to "buy" from "hold." The analyst in coverage was also one of no fewer than eight analysts to hike up its price target after yesterday's positive fiscal first-quarter report in which both earnings and revenue beat estimates, and its full-year outlook impressed.
Extending yesterday's gap higher, MCK is trading at levels not seen since early June. The stock has landed the last two months in the red, but is starting August out strong. Year-to-date the equity is up 15.6%.
Coming into today, eight of the 13 analysts in coverage sport a "buy" or better rating, with the remaining five at a tepid hold," and no sells in sight. Meanwhile, the 12-month consensus target price of $184.38 is a 15.2% premium to last night's close.
When weighing in on McKesson stock, options could be a good way to go. The stock's Schaeffer's Volatility Index (SVI) of 33% stands higher than just 13% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.