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Investing.com - UBS maintained its Buy rating and $96.00 price target on CVS Health (NYSE:CVS) ahead of the company’s upcoming investor day next week. This target aligns with the broader analyst sentiment, as InvestingPro data shows analysts have an average price target implying 20% upside, with the highest target at $102. The stock is currently trading below its Fair Value, suggesting potential upside for investors.
The firm noted that CVS remains "long crowded and well-liked by investors" with expectations for upside relative to both near- and long-term Street estimates. This positive sentiment is reflected in InvestingPro data showing 12 analysts have revised their earnings upwards for the upcoming period, with the stock delivering impressive returns of over 80% year-to-date.
UBS identified three key areas of focus for the investor day: healthcare benefits margin recovery, particularly within Medicare Advantage; mitigating potential recontracting risk and rebate guarantee pressure on Caremark; and pharmacy and consumer wellness earnings stabilization.
Buy-side expectations include flat pharmacy and consumer wellness EBIT long-range plan, low-single-digit to mid-single-digit health services and solutions EBIT growth, and mid-single-digit-plus healthcare benefits EBIT growth with double-digit increases in 2026/27 as Medicare Advantage margins improve.
Investors also anticipate high-single-digit EPS growth in the long-range plan, with double-digit growth in 2026/27 driven by healthcare benefits margin recovery, along with expectations that the 2025 guidance will be raised modestly due to better medical loss ratio in the fourth quarter.
In other recent news, CVS Health reported strong third-quarter 2025 earnings, surpassing analyst expectations with an adjusted earnings per share (EPS) of $1.60, against a forecast of $1.37. The company also outperformed revenue projections, recording $103 billion compared to the anticipated $98.88 billion. In analyst developments, Evercore ISI raised its price target for CVS Health to $95 from $85, maintaining an Outperform rating and projecting mid-teens earnings per share growth for fiscal year 2026. Additionally, Eli Lilly is set to remove CVS Health as its employee drug benefit provider, opting instead for pharmacy benefit manager Rightway, following CVS’s decision to exclude Lilly’s weight-loss drug in favor of a competitor. In leadership news, CVS Health announced that David Joyner will assume the role of Chair of the Board effective January 1, 2026. Meanwhile, Aetna, a CVS Health company, introduced a new AI-powered assistant to simplify health benefits navigation for its members. This tool is integrated into its digital platforms, aiming to enhance user experience by understanding plain language queries.
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