UBS Reiterates Buy Rating on CVS Health (CVS) as Stock 'Well-Liked by Investors'

UBS analyst Kevin Caliendo reiterated a Buy rating and $96.00 price target on CVS Health (NYSE: CVS).

The analyst commented, "CVS remains long crowded and well-liked by investors heading into next week's investor day, with expectations for upside relative to both near- and long-term Street estimates. We think key areas of focus are (1) the HCB margin recovery, particularly within MA, (2) mitigating any potential recontracting risk & rebate guarantee pressure on Caremark, and (3) PCW earnings stabilization. Disappointment on the first two focuses would be negatively received and likely pressure the stock. Setup: Buy-side expectations are for PCW EBIT LRP to be flattish; HSS EBIT LRP to be LSD/MSD with LSD in 2026 and MSD afterward; HCB EBIT LRP to be MSD+ with DD in 2026/27 as MA margins improve. EPS LRP is expected to be HSD with DD growth in 2026/27 driven by HCB margin recovery. There is also an expectation that the 2025 guide will be raised modestly for better MLR in 4Q and thus initial 2026 guide will likely move up accordingly by a marginal amount ($0.05 - $0.10)."

For an analyst ratings summary and ratings history on CVS Health click here. For more ratings news on CVS Health click here.

Shares of CVS Health closed at $77.62 yesterday.

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