In a report released today, Kevin Caliendo from UBS maintained a Buy rating on CVS Health, with a price target of $97.00.
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Kevin Caliendo has given his Buy rating due to a combination of factors that suggest potential upside for CVS Health’s stock. One significant reason is the company’s projected mid-teens EPS compound annual growth rate through 2028, which does not yet account for any substantial capital deployment. This indicates that there could be additional earnings potential from capital redeployment activities, such as share buybacks, starting in 2027. Caliendo’s model assumes a conservative 1-2% EPS growth from these buybacks, which could be higher depending on the timing and scale of the repurchases.
Furthermore, Caliendo notes optimism regarding CVS Health’s performance in the fourth quarter, with potential for EPS upside beyond the current expectations. Despite some confusion around near-term headwinds in the Caremark segment, the analyst remains positive about the company’s long-term prospects, including faster margin improvements at Aetna. Additionally, the establishment of formal guidance for FY26 and a slight EPS raise for FY25 contribute to the positive outlook. As a result, Caliendo has raised the price target for CVS Health to $97, reflecting confidence in the company’s future performance.
Caliendo covers the Healthcare sector, focusing on stocks such as CVS Health, McKesson, and Cencora. According to TipRanks, Caliendo has an average return of 3.6% and a 55.98% success rate on recommended stocks.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $95.00 price target.