CVS Health price target lowered to $86 from $91 at RBC Capital

RBC Capital analyst Frank Morgan lowered the firm’s price target on CVS Health to $86 from $91 and keeps an Outperform rating on the shares. The company reported a “strong” health services performance, particularly specialty pharmacy, more than offset mounting Medicare Advantage – MA – utilization headwinds, the analyst tells investors in a research note. With MA headwinds expected to sustain at Q3 levels through next year however, RBC is raising its 2024 Medical Benefit Ratio estimate to 86.7%.