CVS Health, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Kevin Caliendo from UBS maintained a Buy rating on the stock and has a $79.00 price target.
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Kevin Caliendo has given his Buy rating due to a combination of factors that suggest a positive outlook for CVS Health despite some minor challenges. The company’s recent announcement revealed a slight decrease in the percentage of Medicare Advantage members in highly rated plans, which could potentially impact future earnings. However, this impact is expected to be minimal, with an estimated reduction in 2027 earnings per share by only a small fraction.
Caliendo highlights CVS Health’s history of effectively mitigating similar challenges in the past, such as reducing a significant financial headwind through strategic efforts. This track record, along with a stable financial outlook and a price target of $79 based on a 10x P/E multiple, supports the Buy rating. The overall assessment suggests that the company’s strategic initiatives and financial resilience make it a favorable investment opportunity.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $99.00 price target.