McKesson (NYSE:MCK) EPS Estimates Raised on US Oncology Acquisition

The acquisition of US Oncology by McKesson (NYSE:MCK) will help boost earnings for full year 2012 through 2015, says UBS (NYSE:UBS).

UBS commented, "The US Oncology acquisition closed on December 30th, and we are now including the USON operations in our MCK model. Based on our calculations, we expect the transaction to be $0.03 accretive to EPS in F2012. The US Oncology operations have witnessed some ‘ups and downs’ over the past several years, but most of the issues were macro-related and thus out of the control of USON mgmt. Thus, we assume resumption to more normalized profit growth patterns for C2011-14...We are raising our F2012-15 EPS estimates by $0.03, $0.08, $0.13, and $0.20, respectively to reflect the expected accretion from the USON acquisition."

UBS reiterates a "Buy" rating on McKesson, which closed Wednesday at $73.99, losing $0.48, or 0.64 percent. UBS raised their price target on MCK from $82 to $84.