Analyst Ann Hynes of Mizuho Securities reiterated a Buy rating on CVS Health, with a price target of $95.00.
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Ann Hynes has given her Buy rating due to a combination of factors that highlight CVS Health’s promising financial outlook and strategic initiatives. The company has provided positive updates during its Investor Day, including reaffirming its long-term growth targets for the Health Services business, which alleviates investor concerns regarding potential impacts from changes in wholesale acquisition cost pricing. Additionally, CVS is actively working on margin recovery within its Healthcare Benefits segment and has improved its long-term earnings growth outlook for its retail business.
CVS’s financial targets are particularly attractive, with a mid-teens adjusted EPS compound annual growth rate projected through 2028, excluding potential share repurchases. The Health Services segment is expected to see mid-single-digit operating profit growth post-2026, and the Pharmacy and Consumer Wellness segment is poised to benefit from market share gains and cost savings. Furthermore, CVS’s capital allocation strategy involves significant investments into the business and shareholder returns, with plans to reduce leverage to an investment-grade level, paving the way for future share repurchases and growth initiatives. These strategic moves support the raised price target of $95, reflecting confidence in CVS’s ability to outperform in the market.
In another report released today, UBS also maintained a Buy rating on the stock with a $97.00 price target.