NY, NC opportunities could be 1% tailwind to CVS EPS, says Wells Fargo

After a New York arbitrator recently ruled that New York City could move about 250,000 retirees to Group Medicare Advantage with coverage provided by CVS‘ Aetna from the current SeniorCare program and CVS also secured a contract to serve North Carolina state government employees, teachers, retirees and their family members starting in 2025, Wells Fargo analyst Stephen Baxter estimated these two opportunities could contribute about 8c to EPS at full earnings power, representing about a 1% tailwind. Baxter has an Equal Weight rating and $101 price target on CVS Health shares.