CVS Health price target lowered to $93 from $107 at Bernstein

Bernstein analyst Lance Wilkes lowered the firm’s price target on CVS Health (CVS) to $93 from $107 and keeps a Market Perform rating on the shares. The firm notes CVS is reporting Q1 results this Wednesday but that this "isn’t a call on Q1 earnings," as it thinks CVS PBM operating results could be solid in the quarter. PBM policy risk has come into sharp focus, with multiple Congressional Committees investigating PBMs. This has led to a challenging stock price year with Cigna (CI) and CVS down 20% year-to-date. The underperformance is driven by increased scrutiny on PBM business practices, and potential legislative and regulatory actions that could pressure bottom line, Bernstein adds. The firm sees a potential margin risk to PBMs and expects valuations will remain compressed for PBMs.