CVS Health stock rating reiterated at Overweight by Cantor Fitzgerald

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 $75.39 and commanding a market cap of $95.62 billion, is trading near its 52-week high of $77.34. According to InvestingPro analysis, CVS Health appears undervalued based on its Fair Value metrics.

The research firm highlighted CVS Health’s exposure to the Arizona market, where disenrollment trends are creating negative shifts for several healthcare insurers including Molina Healthcare, UnitedHealth Group, and CVS Health.

Arizona has submitted a work requirements waiver to the Centers for Medicare & Medicaid Services (CMS), making it a state to monitor closely for investors in the healthcare sector.

Market share distribution in Arizona stands at 20% for Centene, 18% for UnitedHealth, 18% for CVS Health, and 2% for Molina Healthcare.

Arizona represents approximately 15% of CVS Health’s total Medicaid enrollment, according to Cantor Fitzgerald’s analysis.

In other recent news, CVS Health Corp.’s subsidiary, Omnicare Inc., has filed for Chapter 11 bankruptcy following a $949 million judgment related to claims of improperly dispensing prescription drugs to long-term care patients. The bankruptcy filing in Texas lists Omnicare’s assets at a minimum of $100 million, with liabilities ranging from $1 billion to $10 billion. This legal action is part of a broader strategy to address financial challenges in the long-term care pharmacy sector. Meanwhile, CVS Health’s Aetna division announced an expansion of its Aetna Clinical Collaboration program to ten hospitals by 2025, aiming to enhance support for Medicare Advantage members. Wolfe Research has raised its price target for CVS Health to $85, citing potential earnings growth driven by improvements in Medicare Advantage margins. Additionally, CVS Health has declared a quarterly dividend of $0.665 per share, payable on November 3, 2025, to shareholders recorded by October 23, 2025.

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