BofA raised the firm’s price target on CVS Health (CVS) to $80 from $75 and keeps a Buy rating on the shares after the Centers for Medicare & Medicaid Services released the calendar year 2026 rate announcement for the Medicare Advantage and Medicare Part D Prescription Drug Programs. A proposed increase of 5.06% from 2025 to 2026 represents a 2.83 percentage point increase since the CY26 Advance Notice of 2.23%, largely attributable to an increase in the effective growth rate, notes the analyst, who views the final rule update positively for CVS.
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