CVS Health, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Erin Wright from Morgan Stanley maintained a Buy rating on the stock and has a $89.00 price target.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Erin Wright has given his Buy rating due to a combination of factors including the anticipated reaffirmation of confidence in the Aetna turnaround and a renewed focus on Caremark amidst broader shifts in the pharmacy benefit management sector. The potential for upside in the pharmacy care services segment is expected to drive long-term earnings per share targets beyond the previous growth floor of over 6%. Despite the higher expectations set by the stock’s significant year-to-date performance, CVS is positioned to raise its earnings per share long-range plan, which would be positively received by the market.
The Aetna segment, in particular, is expected to contribute significantly to earnings growth over the next few years, with confidence in its turnaround and meaningful embedded earnings power. Additionally, addressing concerns related to Caremark and providing greater clarity on its strategy in light of competitive pressures are seen as critical factors that could enhance the stock’s performance. Overall, the combination of these elements suggests that CVS Health’s stock has the potential to perform well, justifying the Buy rating.
In another report released yesterday, RBC Capital also reiterated a Buy rating on the stock with a $93.00 price target.