Deutsche Bank maintains Hold on CVS Health after company update

Deutsche Bank maintained a Hold rating and $81 price target on CVS after a filing by the company reaffirmed FY23 adjusted EPS guidance, expecting to land in the upper half of the range, reaffirmed FY24 guidance, and showed The Medicare Advantage membership growth increased by over 30% to at least 800K in 2024, implying ~23% year over year growth vs. ~17% previously. Despite this update, the firm believes earnings estimates “could be prone to negative revisions as the company digests the two sizable acquisitions,” and sees “potential near- to medium-term earnings risk related to pharmacy reimbursement and 340B.”