CVS Health (CVS): Reiterated Buy After Management Meetings - Mizuho
- Wall Street rises, buoyed by economic data; Dow sets high
- Twitter (TWTR) 'Takeover Money' Moves On as 'Trump Money' Moves In
- Amazon (AMZN) Could Open Over 2,000 Brick-and Mortar Groceries if Tests Succeed - DJ; Kroger (KR) on Watch
- Buy Any Seasonal Market Weakness Ahead of Year End Rally - Oppenheimer (SPY)
- After-Hours Stock Movers 12/05: (TXMD) (COUP) (BOBE) Higher; (SB) (LXRX) (STWD) Lower (more...)
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Mizuho Securities analyst, Ann Hynes, reiterated her Buy on CVS Health (NYSE: CVS) after hosting meetings with CVS CEO Larry Merlo and CFO David Denton. The analyst remains confident that PBMs ability to drive down drug spend via rebates will not change. The spread on gross to net pricing has been widening since 2012, when PBMs first introduced formulary management. Drug trends within CVS's book of business are tracking at only ~ +3.5%, significantly below the industry average of high-single digits, which illustrates the effectiveness of rebates.
Cash flow and capital deployment to shareholders remains a highlight and continued shareholder return via share repurchases, dividend increases and tuck-in M&A. M&A will likely focus on healthcare services and expanding and strengthening its integrated delivery platform.
CVS previously stated that 2016E is expected to be back-half weighted and year-to-date performance should be in-line with expectations. The analyst expects CVS to provide 2017 initial guidance at its annual day in December.
No change to the price target of $111.
Shares of CVS Health closed at $90.18 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stocks with Implied Volatility Movement
- CVS Health and HHS Study Finds Proactive Pharmacy-based Outreach Helps Patients Access Needed Medications during a Natural Disaster
- Teva Pharma (TEVA) Appoints New Global Generic Medicines Group CEO; FY16 Guidance Affirmed
Create E-mail Alert Related CategoriesAnalyst Comments, Management Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!