CVS Health (NYSE:CVS) Stock Price Target Cut by Leerink Partners

Key Points

• Leerink Partners cut its CVS price target from $112 to $104 but maintained an “outperform” rating; the new target implies about 29.5% upside from the cited share price of $80.31.
• Analyst sentiment remains broadly positive: MarketBeat reported an average “Moderate Buy” rating and a consensus price target of $109.08.
• CVS beat quarterly earnings and revenue expectations, reporting EPS of $2.09 versus $1.65 expected and revenue up 5.4% year over year. The company also plans to separate its retail pharmacy business from its other healthcare operations by the first half of 2028.

CVS Health (NYSE:CVS - Get Free Report) had its price target dropped by equities researchers at Leerink Partners from $112.00 to $104.00 in a research report issued on Thursday, Benzinga reports. The brokerage currently has an "outperform" rating on the pharmacy operator's stock. Leerink Partners's price target would indicate a potential upside of 29.49% from the company's current price.

A number of other equities research analysts also recently issued reports on CVS. Royal Bank Of Canada increased their price objective on CVS Health from $107.00 to $113.00 and gave the stock an "outperform" rating in a research report on Thursday, July 9th. Sanford C. Bernstein restated an "outperform" rating and issued a $112.00 target price on shares of CVS Health in a research note on Wednesday, September 9th. Cantor Fitzgerald reaffirmed a "neutral" rating on shares of CVS Health in a report on Friday, October 9th. JPMorgan Chase & Co. lifted their price target on CVS Health from $111.00 to $118.00 and gave the company an "overweight" rating in a research report on Wednesday, August 12th. Finally, Piper Sandler set a $112.00 price objective on CVS Health in a report on Wednesday, September 9th. Twenty-two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, CVS Health presently has an average rating of "Moderate Buy" and an average price target of $109.08.

CVS Health Stock Performance

Shares of NYSE:CVS traded up $0.35 during midday trading on Thursday, reaching $80.31. 12,992,792 shares of the company traded hands, compared to its average volume of 8,482,670. CVS Health has a 12 month low of $69.51 and a 12 month high of $110.68. The firm's fifty day moving average price is $90.82 and its two-hundred day moving average price is $88.86. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.74. The firm has a market capitalization of $102.72 billion, a price-to-earnings ratio of 21.23, a price-to-earnings-growth ratio of 0.85 and a beta of 0.58.

CVS Health (NYSE:CVS - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The pharmacy operator reported $2.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.65 by $0.44. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The firm had revenue of $108.40 billion for the quarter, compared to the consensus estimate of $104.72 billion. During the same period in the prior year, the firm posted $1.60 earnings per share. The company's revenue for the quarter was up 5.4% on a year-over-year basis. On average, equities analysts expect that CVS Health will post 8.02 earnings per share for the current year.

Hedge Funds Weigh In On CVS Health

A number of hedge funds and other institutional investors have recently modified their holdings of CVS. BlackRock Inc. purchased a new position in shares of CVS Health in the second quarter worth $12,747,462,000. State Street Corp grew its holdings in shares of CVS Health by 26.3% during the second quarter. State Street Corp now owns 74,927,064 shares of the pharmacy operator's stock valued at $7,751,205,000 after buying an additional 15,604,883 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of CVS Health by 49.8% during the second quarter. Wellington Management Group LLP now owns 33,801,113 shares of the pharmacy operator's stock valued at $3,496,725,000 after buying an additional 11,233,381 shares during the last quarter. Bank of America Corp DE increased its position in shares of CVS Health by 148.0% in the 2nd quarter. Bank of America Corp DE now owns 23,188,670 shares of the pharmacy operator's stock valued at $2,398,868,000 after acquiring an additional 13,836,701 shares during the period. Finally, Pzena Investment Management LLC acquired a new position in shares of CVS Health in the 2nd quarter valued at $1,217,558,000. 80.66% of the stock is currently owned by hedge funds and other institutional investors.

CVS Health News Summary

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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