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Investing.com - RBC Capital has reiterated its Outperform rating and $93.00 price target on CVS Health (NYSE:CVS) ahead of the company’s upcoming Investor Day scheduled for Tuesday. According to InvestingPro data, the stock is currently trading at $75, with analysts setting targets ranging from $77 to $102, suggesting potential upside from current levels.
RBC analyst Ben Hendrix expressed confidence in CVS as the best positioned managed care organization (MCO) in their coverage universe for the coming year, citing solid execution throughout the current year in the Health Care Benefits business despite challenging utilization conditions.
The analyst specifically highlighted the stabilization in Medicare Advantage margin as a positive factor in the company’s performance within a difficult industry environment.
RBC also noted Caremark’s leadership position in the industry’s shift toward rebate-free pharmacy benefit manager (PBM) models as another strength for CVS Health.
Growth achieved in the Pharmacy and Consumer Wellness segment was also cited as a factor in RBC’s continued Outperform rating and maintenance of the $93 price target for CVS Health.
In other recent news, CVS Health has been the focus of several notable developments. UBS has maintained its Buy rating on CVS Health, setting a price target of $96.00, with expectations of potential upside relative to both near- and long-term estimates. Evercore ISI also raised its price target for CVS Health to $95.00 from $85.00, maintaining an Outperform rating and projecting mid-teens earnings per share growth for fiscal year 2026. In corporate governance news, CVS Health announced that David Joyner will become the Chair of the Board effective January 2026.
Additionally, Aetna, a CVS Health company, has introduced a generative AI-powered assistant to simplify health benefits navigation for its members. In a strategic shift, Eli Lilly has decided to remove CVS Health as its employee drug benefit provider after CVS opted not to cover Lilly’s weight-loss medication. Employees under Lilly’s medical plan will transition to pharmacy benefit manager Rightway starting January 1. These recent developments highlight significant changes and expectations for CVS Health in various areas, from corporate leadership to technological advancements and partnerships.
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