Evercore ISI Reiterates Outperform Rating on CVS Health (CVS)
Evercore ISI analyst Elizabeth Anderson reiterated an Outperform rating and $62.00 price target on CVS Health (NYSE: CVS).
The analyst comments "What happened? After the market close today, Reuters reported that CVS is exploring options, including a potential break-up of the company to separate its PCW (retail drug stores) and HCB (Aetna) segments. While nothing has been finalized, and the plans may not happen, the Board has reportedly discussed options including whether the PBM belongs with Retail or Aetna and whether the resulting actions would create two separate public companies. Our Take: Given what has happened over the last year, we don’t find it surprising that CVS’s Board is taking a hard look at different options. While it is unclear whether any final action will be taken (probably likelier to stay together vs. be broken up, but this decision will likely depend on the 2025 Medicare Advantage outlook and new pharmacy reimbursement model success). As we wrote last year however, there is some degree of trapped value within the enterprise."
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 $62.88 yesterday.