CVS Health (CVS): Compelling As A Trade And An Investment, Expect 20% Upside - Guggenheim
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Guggenheim analyst, John Heinbockel reiterated his Buy rating on shares of CVS Health (NYSE: CVS) and highlighted it as a good investment despite cutting his price target to $90 from $115. The analyst believes that business is good and this is just a difficult period. CVS’ flat 2017 pales in comparison to 2009-2010 when CVS was establishing its retail/PBM platform.
He sees the recent 12% sell-off as both a trading and investment opportunity as he expects new management to instill greater confidence at the upcoming 12/15 annual analyst meeting. The return of 10% EPS growth in 2018, based on guidance, could spur sufficient multiple expansion to support 20%-plus upside over the next twelve months.
Shares of CVS Health closed at $73.53 yesterday.
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