In a report released today, Erin Wright from Morgan Stanley maintained a Buy rating on CVS Health, with a price target of $89.00.
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Erin Wright’s rating is based on CVS Health’s ongoing turnaround strategy, which is expected to result in a stable performance in the third quarter and maintain its 2025 guidance. The company has shown significant progress, as evidenced by its stock price increase of approximately 84% year-to-date, outperforming both its diversified managed care organization peers and the S&P 500. This growth comes after a notable decline in 2024, indicating a strong recovery.
Moreover, CVS Health’s favorable results in its Stars ratings, with over 80% of lives in 4+ Star plans, bolster confidence in its multi-year turnaround plan. The company’s strategic focus on its 2026 bid, which considers higher utilization trends, aims to restore its business to the target margin range. Although CVS does not anticipate growth in Medicare Advantage enrollment for 2026, its current health care benefits trends align with expectations, providing reassurance for investors.
In another report released on October 24, UBS also maintained a Buy rating on the stock with a $96.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVS in relation to earlier this year.