CVS Health stock price target raised to $85 from $80 at Wolfe Research

Investing.com - Wolfe Research has raised its price target on CVS Health (NYSE:CVS) to $85.00 from $80.00 while maintaining an Outperform rating on the stock. The healthcare giant, currently trading near its 52-week high with a remarkable 72.62% YTD return, appears undervalued according to InvestingPro analysis.

The firm cited CVS Health’s potential to achieve earnings power of $10+ per share in 2028, representing a 50%+ increase compared to 2026 consensus estimates, primarily through Medicare Advantage margin improvement.

Wolfe Research noted that CVS Health’s first-half core earnings per share ran $0.50 ahead of expectations, though management has left second-half guidance unchanged, suggesting potential upside.

The research firm’s updated 2025 adjusted EPS estimate of $6.40 aligns with the upper end of CVS Health’s updated 2025 guidance range of $6.30-$6.40, compared to consensus estimates of $6.35.

Wolfe Research’s new $85 price target represents approximately 11 times its 2026 EPS estimate of $7.50, or about 8 times the company’s projected earnings power.

In other recent news, CVS Health announced a quarterly dividend of $0.665 per share, which will be payable on November 3, 2025, to shareholders of record as of October 23, 2025. Additionally, CVS Pharmacy has agreed to a $12.25 million settlement with Massachusetts over allegations of overcharging the state’s Medicaid program, MassHealth, by not offering discounted prices available to cash-paying customers. In the realm of stock analysis, Cantor Fitzgerald reiterated its Overweight rating on CVS Health, maintaining a price target of $78.00, highlighting the company’s position amid changes in the health insurance marketplace. Meanwhile, CVS Caremark, a division of CVS Health, has decided not to include Gilead Sciences’ new HIV prevention drug, Yeztugo, in its commercial formularies. This decision was made based on clinical, financial, and regulatory considerations, according to CVS spokesperson David Whitrap. Despite this, BMO Capital maintained an Outperform rating on Gilead, suggesting the exclusion does not pose a significant threat to Yeztugo’s broader launch. These developments reflect CVS Health’s ongoing strategic and financial decisions impacting its operations and partnerships.

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