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Investing.com - Truist Securities has reiterated its Buy rating on CVS Health (NYSE:CVS) with a price target of $84.00 following the company’s second-quarter results. According to InvestingPro data, CVS is currently trading below its Fair Value, with the stock showing a 4.26% dividend yield and maintaining dividend payments for 55 consecutive years.
The firm cited CVS Health’s strong second-quarter performance, which featured both top and bottom-line beats, improved performance in the Health Care Benefits (HCB) and PCW segments, solid trends in Pharmacy Services, and raised full-year 2025 guidance. The company’s revenue growth stands at 6.21% over the last twelve months, with total revenue reaching $384.3 billion.
Truist expressed encouragement regarding steps CVS is taking to address cost pressures at Oak Street Health and expects ongoing margin recovery in the Health Care Benefits segment.
The research firm views CVS Health’s collection of assets as well-positioned, supported by continued investment in technology and automation to drive improved service, experience, and reduced friction with members and providers.
Truist also highlighted CVS Health’s improved cash flow, raised full-year guidance, and improving financial flexibility as factors in its decision to raise earnings per share estimates for fiscal years 2025 and 2026 while maintaining its Buy rating.
In other recent news, CVS Health Corp reported impressive financial results for the second quarter of 2025. The company surpassed earnings expectations with an adjusted earnings per share (EPS) of $1.81, compared to the forecasted $1.46. Additionally, CVS Health achieved revenues close to $99 billion, exceeding analysts’ projections. This strong performance prompted the company to raise its full-year EPS guidance, indicating confidence in its operational strategies and initiatives. The positive earnings report is a significant development for investors, highlighting the company’s robust financial health. There were no reports of mergers or acquisitions. Analyst upgrades or downgrades were not mentioned in the recent updates. These developments underscore CVS Health’s strong market position and successful execution of its business strategies.
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