CVS Health (CVS) PT Raised to $130 at Tigress Financial Partners

Tigress Financial Partners analyst Ivan Feinseth raised the price target on CVS Health (NYSE: CVS) to $130.00 while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating on CVS and increase our 12-month target price to $130 as it continues to experience strong momentum across all business lines and plans to expand further into healthcare services, driving continued long-term shareholder value creation. CVS’s consumer-centric integrated healthcare model and increasing primary care strategy drive growth across all business segments and position it as a leading multi-channel healthcare services provider. Its ongoing evolution into a customer-centric full-service healthcare solutions provider drove another quarter of strong results. CVS continues to see gains from its Aetna acquisition as it continues to experience broad-based sales growth and operating margin expansion. CVS recently increased guidance for the second time this year after reporting strong Q2 results. Q2 revenue increased 11% Y/Y to $80.6 billion, and year-to-date revenue was up 11%, driven by growth across all segments. Health Care Benefits revenue increased 10.9% Y/Y to $22.76 billion. Medical membership increased by 922,000 members Y/Y to 24.4 million. Pharmacy Services revenue increased 11% Y/Y to $42.81 billion. Total pharmacy claims processed grew 3.9% Y/Y to 584.3 million, with Pharmacy network claims processed growing to 499.1 million and Mail choice pharmacy claims growing to 85.2 million. Retail revenue increased 6.3% Y/Y to $26.29 billion, driven by increased prescription and front store volume, with Prescriptions filled up 1.6% to 400.8 million. In June, CVS Health became the first healthcare provider to directly integrate with Carequality, the largest medical records exchange in the U.S. CVS enrolled 6 million active users on CVS’s individualized Health Dashboard since it launched and expanded free healthcare screenings in underserved communities and support of community health. The expansion of HealthHubs and MinuteClinics will continue to improve how healthcare services are delivered and continue to be an ongoing growth driver. CVS continues to enhance its digital health initiatives, including the recently launched CVS Health Ventures fund, furthering new digital health innovations by enabling it to invest in and partner with high-potential, early-stage companies to drive technology-enabled innovation and digital healthcare. CVS continues to enhance its digital health initiatives, launching the CVS Health Ventures fund to further new digital health innovations by enabling it to invest in and partner with high-potential, early-stage companies to drive technology-enabled innovation and digital healthcare. CVS also recently launched its first Aetna-CVS branded product lines, offering value-priced options next to full-priced branded products, driving increased sales and greater margins. CVS also continues to enhance shareholder returns through ongoing dividend increases and share repurchases. We believe further upside exists and our 12-month target price of $130 combined with dividends represents a potential total return of over 24% from current levels."

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