Bernstein upgrades CVS on Medicare Advantage turnaround

Bernstein analyst Lance Wilkes upgraded CVS Health (CVS) to Outperform from Market Perform with a price target of $94, up from $91, which offers 23% upside. The stock in premarket trading is up 1% to $76.70. CVS has “attractive exposure” to the Medicare Advantage turnaround and potential for more stable earnings in its pharmacy businesses after reform impacts, the analyst tells investors in a research note. Bernstein sees the recent pharmacy benefit manager bill passage and the first Federal Trade Commission settlement with Cigna as a “clearing event.”