Analyst Charles Rhyee of TD Cowen maintained a Buy rating on CVS Health, boosting the price target to $99.00.
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.
Charles Rhyee has given his Buy rating due to a combination of factors, including the updated earnings projections and management’s guidance. The revised price target of $99 reflects an optimistic outlook based on CVS Health’s adjusted earnings per share (EPS) estimates for 2025 and 2026, which are $6.37 and $7.28, respectively. These figures are aligned with management’s guidance and slightly above consensus estimates, indicating potential for growth.
Rhyee views the company’s guidance as conservative, particularly given the strength in the Health Care Benefits segment and the potential for continued performance in other areas. The assumptions for the latter half of the year appear cautious, with expectations of a decline in certain segments, yet the overall outlook remains positive. The valuation, based on a discounted cash flow model, suggests that CVS shares could trade at approximately 13 times the estimated 2026 adjusted EPS, supporting the Buy recommendation.
According to TipRanks, Rhyee is a 3-star analyst with an average return of 0.9% and a 46.31% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as CVS Health, Icon, and IQVIA Holdings.
In another report released on August 1, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $70.00 price target.