CVS Health, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Erin Wright from Morgan Stanley reiterated a Buy rating on the stock and has a $80.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Erin Wright has given his Buy rating due to a combination of factors that highlight CVS Health’s potential for growth and stability in a challenging market. Despite the current difficulties in the managed care sector, Wright sees the company’s path to Medicare Advantage margin recovery as undervalued by the market. This optimism is supported by CVS’s potential to outperform in the upcoming quarter, with expectations of a favorable medical loss ratio performance that could positively impact the stock.
Additionally, CVS’s strategic focus on profitability, particularly in its 2026 Medicare Advantage bid strategy, positions it well against competitors. The company’s limited exposure to Medicaid risks and its decision to exit the Health Insurance Exchange business, which has been problematic for others, further strengthens its outlook. Moreover, CVS’s ongoing efforts with Oak Street Health are expected to align with its 2025 guidance, indicating a clear path to operational improvement. These elements combined suggest a promising embedded earnings opportunity for CVS, justifying the Buy rating.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $85.00 price target.