Barclays Issues Pessimistic Forecast for CVS Health (NYSE:CVS) Stock Price

Key Points

• Barclays lowered its CVS Health price target from $108 to $107 but maintained an “overweight” rating, implying about 33.5% upside from the prior close.
• Analyst sentiment remains broadly positive: CVS has a “Moderate Buy” consensus rating and an average price target of $109.42. The company also beat quarterly earnings and revenue estimates, reporting adjusted EPS of $2.09 and revenue of $108.4 billion.
• CVS plans to separate its retail pharmacy business from its insurance and healthcare operations, targeting two publicly traded companies by the first half of 2028; execution and the allocation of debt and costs remain key uncertainties.

CVS Health (NYSE:CVS - Get Free Report) had its target price lowered by equities researchers at Barclays from $108.00 to $107.00 in a report released on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the pharmacy operator's stock. Barclays's target price would suggest a potential upside of 33.53% from the stock's previous close.

Several other equities analysts also recently weighed in on the company. Truist Financial raised their target price on CVS Health from $108.00 to $118.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Jefferies Financial Group reaffirmed a "buy" rating and set a $103.00 target price on shares of CVS Health in a research note on Wednesday. Raymond James Financial reiterated an "outperform" rating and issued a $120.00 target price on shares of CVS Health in a research report on Wednesday. Royal Bank Of Canada boosted their price target on shares of CVS Health from $107.00 to $113.00 and gave the stock an "outperform" rating in a research report on Thursday, July 9th. Finally, Cantor Fitzgerald reiterated a "neutral" rating on shares of CVS Health in a report on Friday, October 9th. Twenty-two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, CVS Health currently has a consensus rating of "Moderate Buy" and a consensus price target of $109.42.

CVS Health Stock Performance

CVS traded up $0.17 during midday trading on Thursday, hitting $80.13. 10,231,981 shares of the company were exchanged, compared to its average volume of 8,469,738. The company's 50 day simple moving average is $90.82 and its 200 day simple moving average is $88.86. The firm has a market capitalization of $102.49 billion, a price-to-earnings ratio of 21.18, a price-to-earnings-growth ratio of 0.85 and a beta of 0.58. CVS Health has a 1-year low of $69.51 and a 1-year high of $110.68. The company has a current ratio of 0.87, a quick ratio of 0.66 and a debt-to-equity ratio of 0.74.

CVS Health (NYSE:CVS - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The pharmacy operator reported $2.09 EPS for the quarter, beating the consensus estimate of $1.65 by $0.44. The company had revenue of $108.40 billion for the quarter, compared to analyst estimates of $104.72 billion. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The firm's revenue was up 5.4% on a year-over-year basis. During the same quarter last year, the business earned $1.60 earnings per share. As a group, sell-side analysts predict that CVS Health will post 8.02 earnings per share for the current year.

Hedge Funds Weigh In On CVS Health

Large investors have recently made changes to their positions in the stock. Kilter Group LLC bought a new position in CVS Health in the second quarter valued at approximately $27,000. Beaird Harris Wealth Management LLC raised its position in shares of CVS Health by 201.0% during the 2nd quarter. Beaird Harris Wealth Management LLC now owns 292 shares of the pharmacy operator's stock valued at $30,000 after acquiring an additional 195 shares during the last quarter. J.Safra Asset Management Corp bought a new position in shares of CVS Health in the 2nd quarter worth $30,000. Timbuktu Capital Management LLC acquired a new stake in shares of CVS Health during the second quarter worth $31,000. Finally, Dunhill Financial LLC acquired a new position in CVS Health in the second quarter valued at about $32,000. 80.66% of the stock is currently owned by institutional investors and hedge funds.

CVS Health News Roundup

Here are the key news stories impacting CVS Health this week:

• Positive Sentiment: CVS reported third-quarter adjusted earnings of $2.09 per share, above the roughly $1.65 consensus, while revenue rose 5.4% year over year to $108.4 billion. Management also raised its 2026 adjusted EPS outlook to at least $8.20 and operating cash flow guidance to at least $15.5 billion. Read More.
• Neutral Sentiment: The company plans to separate its retail pharmacy business from Aetna, Caremark and related healthcare operations, aiming to create two publicly traded companies by the first half of 2028. The separation could let each business focus on its own operations, but the potential value for shareholders will depend on how it is structured and executed. Read More.
• Negative Sentiment: The breakup announcement has overshadowed the earnings beat. Investors may be concerned about the execution risks of separating the businesses, including how debt and costs will be allocated and whether the companies can maintain the benefits of their existing integration. Read More.

About CVS Health

CVS Health Corporation NYSE: CVS is a diversified health care company that provides pharmacy, insurance and health services in the United States. Its businesses serve consumers, employers, health plans and health care providers through pharmacies, benefit programs, insurance coverage and clinical care services.

The company's Pharmacy Services segment, led by CVS Caremark, manages prescription drug benefits for employers, insurers and government programs. CVS Pharmacy operates retail pharmacies and health-focused stores that dispense prescriptions and offer over-the-counter products, health and wellness merchandise, immunizations and related services.

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