Jefferies reiterates Buy rating on CVS Health stock, maintains $80 price target

Investing.com - Jefferies has reiterated its Buy rating on CVS Health (NYSE:CVS) stock with a price target of $80.00. The healthcare giant’s stock has shown remarkable strength this year, delivering a 61.7% year-to-date return, and currently trades near its 52-week high of $72.51. According to InvestingPro analysis, CVS Health appears undervalued at current levels.

The research firm noted that investor concerns were elevated ahead of CVS Health’s second-quarter financial results, particularly following challenging results and outlooks reported by various managed care organizations.

Jefferies highlighted that CVS Health demonstrated the conservative nature of management’s guidance ranges while showcasing the value of its diversified yet strategically linked business segments.

The firm believes CVS Health has made appropriate strategic moves ahead of 2026 to position itself well for the current managed care organization environment, while its pharmacy benefit manager and pharmacy businesses continue to experience growth.

Jefferies pointed to the stock’s valuation as compelling at 10 times price-to-earnings ratio.

In other recent news, CVS Health reported better-than-expected earnings for the second quarter of 2025, with adjusted earnings per share (EPS) of $1.81, surpassing the forecasted $1.46. The company’s revenues also exceeded expectations, reaching nearly $99 billion. Following this strong performance, CVS Health raised its full-year EPS guidance, indicating confidence in its operational strategies. In addition to these financial results, Truist Securities reiterated its Buy rating on CVS Health, maintaining a price target of $84.00, citing improvements in the Health Care Benefits and Pharmacy Services segments. Baird also upgraded CVS Health’s stock from Neutral to Outperform, increasing its price target to $82.00, highlighting the company’s exposure to Medicare Advantage as a key factor. These developments reflect a positive outlook from analysts regarding CVS Health’s strategic initiatives and market positioning.

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