In a report released yesterday, Allen Lutz from Bank of America Securities maintained a Buy rating on CVS Health, with a price target of $89.00.
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Allen Lutz has given his Buy rating due to a combination of factors that highlight CVS Health’s potential for growth and improvement. Despite a mixed third quarter, CVS Health demonstrated strong performance in certain segments, such as Healthcare Benefits and Pharmacy & Consumer Wellness, with earnings before interest and taxes (EBIT) exceeding expectations. The company’s strategic decision to slow down the pace of new clinic growth at Oak Street is expected to reduce losses in the coming years, thereby improving financial outlook.
Furthermore, CVS Health’s third-quarter revenue, EBIT, and earnings per share (EPS) surpassed both consensus and Bank of America’s estimates, indicating robust financial health. The company also raised its 2025 adjusted EPS guidance, reflecting confidence in its future performance. These positive developments, alongside the company’s ability to manage market dynamics and adjust its strategies accordingly, underpin Lutz’s Buy rating for CVS Health.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $93.00 price target.
CVS’s price has also changed moderately for the past six months – from $65.030 to $80.600, which is a 23.94% increase.