Analyst Michael Cherny of Leerink Partners reiterated a Buy rating on CVS Health (CVS – Research Report), boosting the price target to $79.00.
Michael Cherny has given his Buy rating due to a combination of factors that suggest CVS Health is well-positioned for future growth. The company is expected to recover its earnings power over the coming years, with management confident in meeting or exceeding their guidance for fiscal year 2025. This optimism is bolstered by improvements in Aetna’s performance, driven by product and geographic changes that are likely to enhance margins.
Additionally, the Pharmacy Benefit Management (PBM) segment is anticipated to maintain its positive growth trajectory, supported by strong demand for specialty drugs. While there are challenges such as elevated utilization and macroeconomic pressures, CVS Health appears capable of navigating these issues effectively. The company’s potential for medium to long-term upside, along with the possibility of multiple expansion as the new management team continues to deliver on expectations, supports Cherny’s Buy rating and increased price target.
In another report released on April 16, TD Cowen also maintained a Buy rating on the stock with a $90.00 price target.
CVS’s price has also changed moderately for the past six months – from $56.120 to $65.920, which is a 17.46% increase.