Bank of America Securities analyst Allen Lutz has reiterated their bullish stance on CVS stock, giving a Buy rating today.
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Allen Lutz has given his Buy rating due to a combination of factors that highlight CVS Health’s strong market position and financial performance. The company’s recent quarterly results demonstrated robust performance in its Pharmacy & Consumer Wellness segment, which is expected to continue as a near-term advantage over competitors. This segment’s success is attributed to strategic adjustments made by CVS, allowing it to outperform peers facing challenges in Medicare Advantage and Medicaid markets.
Additionally, CVS benefits from unique opportunities in the retail pharmacy market, bolstered by industry consolidation and its integrated business model. These factors provide CVS with a degree of resilience against market pressures, supporting a positive outlook for earnings revisions. Furthermore, improvements in Aetna’s margins and the retail pharmacy’s performance contribute to an optimistic forecast, prompting an increase in the company’s price objective and earnings estimates for 2025 and 2026.
In another report released today, Barclays also maintained a Buy rating on the stock with a $80.00 price target.