Wells Fargo analyst Stephen Baxter has maintained their bullish stance on CVS stock, giving a Buy rating on November 4.
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Stephen Baxter has given his Buy rating due to a combination of factors, primarily focusing on CVS Health’s solid performance in the third quarter of 2025 and the company’s strategic positioning for future growth. Despite some moderation in the bullish outlook for CVS’s Health Care Benefits segment due to steeper-than-expected Part D Medical Loss Ratios, the overall trajectory remains positive, with an increase in the 2025 earnings per share estimate and stable projections for 2026.
Baxter highlights the company’s strategic adjustments, such as the exit from the Health Insurance Exchange business and improvements in care delivery, which are expected to contribute to mid-teens earnings growth in 2026. While there are some headwinds, including slow growth in the Caremark segment and a cautious outlook for Medicaid, the potential tailwinds, such as progress in Medicare Advantage and improved cost management, support the Buy rating. The price target, slightly adjusted to $102, reflects a scenario of margin recovery in Medicare Advantage, indicating confidence in CVS’s ability to navigate current challenges and capitalize on future opportunities.
In another report released on November 4, Barclays also maintained a Buy rating on the stock with a $87.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVS in relation to earlier this year.