In a report released on May 1, Michael Cherny from Leerink Partners reiterated a Buy rating on CVS Health (CVS – Research Report), with a price target of $83.00.
Michael Cherny’s rating is based on several factors that highlight CVS Health’s positive trajectory. The company’s first-quarter results for 2025 indicate a promising turnaround, with health care benefits cost trends aligning with management’s expectations and showing signs of stabilization. Despite some complexities in Aetna’s financials due to prior period adjustments, these are seen as strategic steps that support a return to consistent earnings power, with potential for upward guidance adjustments as trends stabilize further.
Additionally, the Pharmacy Benefit Management (PBM) segment is expected to outperform, driven by accelerated growth in areas like specialty medications and the introduction of preferred formulary options. While there are challenges that could limit immediate margin recovery, the overall momentum is positive, with more supportive factors than obstacles. This improving profitability is anticipated to lead to multiple expansion, and there are no current results that negatively impact the earnings trajectory for fiscal year 2026. As a result, Cherny reiterates an Outperform rating and raises the price target to $83.
In another report released on May 2, Barclays also maintained a Buy rating on the stock with a $82.00 price target.
CVS’s price has also changed moderately for the past six months – from $55.810 to $69.450, which is a 24.44% increase.