Analyst Michael Cherny of Leerink Partners reiterated a Buy rating on CVS Health, retaining the price target of $86.00.
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Michael Cherny has given his Buy rating due to a combination of factors that highlight CVS Health’s positive trajectory. The company’s second-quarter performance for 2025 was notably strong, with most segments moving in a favorable direction, indicating more supportive conditions than challenges across the business. Cherny emphasizes the ongoing recovery in margins and EBIT growth, which remains on track despite some increased utilization in the group Medicare Advantage (MA) business.
Furthermore, the strength in CVS’s Caremark and PCW divisions, although less highlighted, contributes significantly to the company’s overall growth prospects and potential upsides. While there are some pressures within Oak Street/Healthcare Delivery, Cherny views these as minor in the broader context of CVS’s growth narrative. Overall, the analyst is optimistic about CVS’s setup for the remainder of 2025 and into 2026, maintaining an Outperform rating with a price target of $86.
According to TipRanks, Cherny is a 4-star analyst with an average return of 3.6% and a 51.48% success rate. Cherny covers the Healthcare sector, focusing on stocks such as Align Tech, CVS Health, and DENTSPLY SIRONA.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $99.00 price target.