Goldman Sachs analyst Nathan Rich has maintained their bullish stance on CVS stock, giving a Buy rating on February 8.
Nathan Rich has given his Buy rating due to a combination of factors that indicate CVS Health’s resilience and potential for growth. Despite the company facing 4Q utilization pressure, the negative impact on the 2024 guidance was less significant than anticipated, suggesting CVS is managing challenges effectively. The company also outperformed expectations, with its 4Q MBR exceeding consensus and only slightly lagging behind peers. Moreover, management strategies to prioritize margin recovery and maintain profitability in its Medicare Advantage (MA) segment demonstrate a focus on long-term financial health. These elements suggest CVS Health is in a position to navigate current market pressures with a level-headed approach.
Furthermore, Rich’s analysis indicates that CVS Health’s revised 2024 EPS, while lower, still allows for a roughly 10% growth projection from this new base. This growth potential, coupled with the stock trading at a near low P/E ratio, presents an attractive valuation for investors. The company’s commitment to not compromise on MA profitability also signals a disciplined approach to pricing, which plays a favorable role in the industry’s rational pricing environment. The combination of these strategic actions and financial metrics supports Rich’s confidence in recommending CVS Health as a Buy.
In another report released on February 8, TD Cowen also maintained a Buy rating on the stock with a $99.00 price target.
CVS’s price has also changed slightly for the past six months – from $73.910 to $76.050, which is a 2.90% increase.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
CVS Health (CVS) Company Description:
Headquartered in Rhode Island and founded in 1963, CVS Health Corp. is a healthcare company in the U.S. that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; Aetna, a health insurance provider, among many other brands.
Read More on CVS:
- CVS Health price target lowered to $92 from $100 at Morgan Stanley
- A New Cause for Concern: CVS Health Corp Adds a New Corporate Activity and Growth Risk
- CVS Health Corp Earnings Update: Did it Beat Estimate Forecasts?
- CVS Health (NYSE:CVS) Rises after Q4 Earnings Beat
- Unusually active option classes on open February 7th
