Barclays Maintains an 'Overweight' on CVS Caremark (CVS); Predictability Seems to Have Returned
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Price: $93.02 -0.67%
Rating Summary:
34 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
34 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on CVS Caremark (NYSE: CVS), raises PT from $37 to $44.
Barclays analyst says, "CVS is demonstrating good stability, with 1Q11 EPS a tad above guidance and street expectations. Initiatives to improve performance at the PBM are on track, but there is still not much new information about factors key to the future outlook, such as the 2011 selling season and the timing of new generics. In the retail business, the company remains disciplined about avoiding front-end promotions that do not improve profits as well as sales. Free cash flow was strong this quarter, as inventory dropped as hoped and PBM cashflow accelerated. It seems likely that CVS will hit its annual target of $4.0-$4.2B, and use that cash to purchase Universal American, buy back stock, raise the annual dividend by 43%, and invest in its core businesses."
"We are maintaining our 2Q11 EPS of $0.65 vs. guidance of $0.63-$0.65, but are raising our FY11 EPS to $2.76 from $2.69 and our FY12 EPS to $3.11 from $3.03."
For more ratings news on CVS Caremark click here and for the rating history of CVS Caremark click here.
Shares of CVS Caremark closed at $36.79 yesterday.
Barclays analyst says, "CVS is demonstrating good stability, with 1Q11 EPS a tad above guidance and street expectations. Initiatives to improve performance at the PBM are on track, but there is still not much new information about factors key to the future outlook, such as the 2011 selling season and the timing of new generics. In the retail business, the company remains disciplined about avoiding front-end promotions that do not improve profits as well as sales. Free cash flow was strong this quarter, as inventory dropped as hoped and PBM cashflow accelerated. It seems likely that CVS will hit its annual target of $4.0-$4.2B, and use that cash to purchase Universal American, buy back stock, raise the annual dividend by 43%, and invest in its core businesses."
"We are maintaining our 2Q11 EPS of $0.65 vs. guidance of $0.63-$0.65, but are raising our FY11 EPS to $2.76 from $2.69 and our FY12 EPS to $3.11 from $3.03."
For more ratings news on CVS Caremark click here and for the rating history of CVS Caremark click here.
Shares of CVS Caremark closed at $36.79 yesterday.
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