Stephen Baxter, an analyst from Wells Fargo, maintained the Buy rating on CVS Health. The associated price target remains the same with $102.00.
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Stephen Baxter has given his Buy rating due to a combination of factors that highlight CVS Health’s promising growth trajectory. The company has set ambitious long-term financial targets, including a realistic path to achieving over $10 in earnings per share by 2028. This growth is expected to be driven by a mid-teens percentage increase in EPS from 2026 to 2028, excluding potential benefits from capital deployment, which could further enhance earnings.
Additionally, CVS Health’s strategic focus on recovering Medicare Advantage margins and exiting exchanges are anticipated to be significant earnings drivers from 2026 onwards. Despite ongoing uncertainties surrounding the Pharmacy Benefit Management sector, CVS has defended its role in controlling drug costs and adapting to market changes. The company’s financial projections, including a potential reduction in share count through repurchases, support a favorable outlook, aligning with Baxter’s optimistic earnings estimates.
Baxter covers the Healthcare sector, focusing on stocks such as CVS Health, Centene, and Cigna. According to TipRanks, Baxter has an average return of -2.2% and a 41.61% success rate on recommended stocks.
In another report released today, UBS also maintained a Buy rating on the stock with a $97.00 price target.