CVS Health, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Charles Rhyee from TD Cowen maintained a Buy rating on the stock and has a $105.00 price target.
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Charles Rhyee has given his Buy rating due to a combination of factors that, in his view, support continued earnings and profit growth despite lower Medicare Advantage (MA) reimbursement in 2027. He notes that management still outlines a credible path to expand MA profit dollars and medical margins, even if MA membership moderates, by prioritizing profitability over volume and assuming rational competitive behavior.
Rhyee also expects a near-term resolution of CVS’s FTC matter with limited financial effect, which could remove a key overhang on the pharmacy benefit management business and accelerate adoption of its TrueCost model. In addition, he views the 2026 outlook, especially for the pharmacy and consumer wellness segment, as intentionally conservative relative to underlying tailwinds, supporting his view that adjusted EPS can still grow at a healthy rate close to, though slightly below, the long-term mid-teens target.
According to TipRanks, Rhyee is a 4-star analyst with an average return of 2.7% and a 50.20% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as Cardinal Health, Cigna, and CVS Health.
In another report released on February 3, Morgan Stanley also reiterated a Buy rating on the stock with a $93.00 price target.