In a report released yesterday, Allen Lutz from Bank of America Securities maintained a Buy rating on CVS Health, with a price target of $100.00.
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Allen Lutz has given his Buy rating due to a combination of factors including CVS Health’s promising financial outlook and strategic initiatives. The company has updated its guidance for 2025 and introduced projections for 2026, indicating a strong expected EPS growth of 13-16% year-over-year, which is a positive sign for investors. Additionally, CVS has set a long-term goal of achieving mid-teens EPS compound annual growth rate through 2028, suggesting sustained financial performance.
Moreover, CVS is actively working on enhancing its technology products and services, such as the open consumer engagement platform, which is expected to drive synergies across its business segments. The company’s focus on improving margins, particularly in the CVS Caremark and Aetna segments, along with potential improvements in Oak Street, further supports the optimistic outlook. These strategic moves, combined with the company’s robust financial targets, underpin Allen Lutz’s Buy rating for CVS Health.
Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, GoodRx Holdings, and Doximity. According to TipRanks, Lutz has an average return of 11.4% and a 65.85% success rate on recommended stocks.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $93.00 price target.