Analyst Erin Wright of Morgan Stanley maintained a Buy rating on CVS Health, retaining the price target of $82.00.
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Erin Wright has given his Buy rating due to a combination of factors that highlight the potential of CVS Health’s integrated model and its ongoing turnaround efforts. The leadership of CEO David Joyner and CFO Brian Newman is focused on stabilizing the business and ensuring sustainable performance through a disciplined approach to capital deployment. The integrated model is seen as a valuable solution to issues in healthcare affordability and access, with initiatives like new pharmacy pricing models and biosimilar adoption being key examples.
Additionally, CVS Health’s progress in the Medicare Advantage segment, despite industry pressures, shows a strategic focus on restoring target margins. The company’s approach to the 2026 Medicare Advantage bids and its ability to reprice a significant portion of the Group MA book are steps towards achieving financial targets. While there are some uncertainties, such as pressure on CAHPS scores, CVS remains confident in the areas it can control, and the perceived overreaction in the stock market is seen as unwarranted given the limited information available.
According to TipRanks, Wright is a 5-star analyst with an average return of 13.1% and a 64.42% success rate. Wright covers the Healthcare sector, focusing on stocks such as Centene, Humana, and Cardinal Health.
In another report released on September 5, Bank of America Securities also maintained a Buy rating on the stock with a $89.00 price target.