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Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on CVS Health (NYSE:CVS) with a price target of $78.00. The healthcare giant, currently trading at $71.21 and boasting a market capitalization of $90.27 billion, has demonstrated strong momentum with a 64% gain year-to-date. According to InvestingPro analysis, CVS appears undervalued based on its Fair Value metrics.
The research firm maintained its positive outlook on the healthcare company amid ongoing changes in the health insurance marketplace.
Cantor Fitzgerald noted that several health plans have already notified states about reductions in their current coverage footprints.
The firm believes these reductions will likely manifest as county-level decisions to exit exchange participation rather than complete state withdrawals, as this approach preserves insurers’ rights to re-enter markets without facing the five-year ban that comes with full state exits.
The research firm highlighted that if CVS were to exit the market entirely, it would cause a significant membership shift since the company currently covers between 1.3 million and 1.4 million lives.
In other recent news, Gilead Sciences faced a setback as CVS Caremark decided not to include its new HIV prevention drug, Yeztugo, in its commercial formularies. This decision by CVS, the largest pharmacy benefit manager in the U.S., was based on clinical, financial, and regulatory considerations. Despite this development, BMO Capital maintained its Outperform rating and a $130 price target on Gilead, indicating no broader concerns for the Yeztugo launch. Meanwhile, CVS Health has seen several positive analyst reviews. Baird upgraded CVS Health to Outperform, raising its price target to $82 due to opportunities in Medicare Advantage. Jefferies reiterated its Buy rating on CVS Health with a price target of $80, while Truist Securities also maintained a Buy rating with an $84 target. Truist highlighted CVS Health’s strong second-quarter performance, noting top and bottom-line beats and improved performance in key segments. These developments offer insight into recent activities concerning Gilead Sciences and CVS Health.
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