Wells Fargo upgrades CVS Health to Overweight, ups price target to $66

As previously reported, Wells Fargo upgraded CVS Health (CVS) to Overweight from Equal Weight with a price target of $66, up from $60. The firm believes the negative consequences of aggressive growth strategies at Aetna have likely peaked and creates a compelling investment opportunity. Medicare Advantage and Exchange improvement should happen through pricing/benefit changes and Medicaid should happen with rate cycle, Wells says. Its base case represents a 25% annualized stock return and 30% total return.