CVS Health stock rating upgraded by Baird to Outperform on Medicare Advantage opportunity

Published 14/08/2025, 14:52
CVS Health stock rating upgraded by Baird to Outperform on Medicare Advantage opportunity

Investing.com - Baird upgraded CVS Health (NYSE:CVS) from Neutral to Outperform on Thursday, raising its price target to $82.00 from $71.00. The healthcare giant, currently trading at $66.53 with a market cap of $84.33 billion, has shown strong momentum with a 51.84% year-to-date return.

The upgrade comes as part of Baird’s updated healthcare coverage power rankings, with the firm expressing preference for companies with Medicare Advantage exposure.

Baird positioned CVS Health favorably in its rankings, specifically citing the "Medicare Advantage trade" as a key investment theme driving the more positive outlook.

The firm simultaneously downgraded UnitedHealth Group in its managed care organization (MCO) power rankings, seeing downside to its current price of $272 across multiple scenarios.

Baird also maintained caution on companies with significant Medicaid and Health Insurance Exchange exposure, though it warned against short positions in the near term pending a potential extended advance premium tax credit.

In other recent news, CVS Health reported strong financial results for the second quarter of 2025, surpassing expectations. The company achieved an adjusted earnings per share (EPS) of $1.81, exceeding the projected $1.46. Additionally, CVS Health’s revenues reached nearly $99 billion, which also surpassed forecasts. Following these results, the company raised its full-year EPS guidance, indicating confidence in its operational performance and strategic direction. Truist Securities reiterated its Buy rating on CVS Health, maintaining a price target of $84. The firm highlighted the company’s robust performance in the Health Care Benefits and PCW segments, as well as solid trends in Pharmacy Services. These developments suggest continued strength and positive momentum for CVS Health.

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