JPMorgan analyst Lisa Gill is positive on CVS Health post the investor day, believing the company provided a conservative long-term growth outlook with “ample upside opportunities.” The announcement of CostVantage represents a potentially significant offset to long-term pharmacy reimbursement headwinds, the analyst tells investors in a research note. While it remains to be seen whether pharmacy benefit managers will broadly adopt the model, Caremarks’s significant share and CVS’s large retail pharmacy footprint provide substantial scale that could drive meaningful change for the industry, contends the firm. It keeps an Overweight rating on the shares.
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Read More on CVS:
- CVS Health (NYSE:CVS) Rises on Bullish FY24 Outlook and Dividend Hike
- CVS Health increases quarterly dividend 10% to 66.5c per share
- CVS Health sees FY24 adjusted EPS at least $8.50, consensus $8.51
- CVS Health back FY23 adjusted EPS view $8.50-$8.70, consensus $8.58
- CVS Health to introduce new pharmacy reimbursement model