In a report released yesterday, Steven Halper from Cantor Fitzgerald reiterated a Buy rating on CVS Health (CVS), with a price target of $80. The company’s shares closed yesterday at $64.22.
Halper wrote:
“. We reiterate our Overweight rating on CVS shares but lower our 12-month price target to $80 from $96. This morning, February 20, CVS reported 4Q18 results that were in line with our estimates and FactSet consensus (after accounting for about one month of contribution from Aetna). However, the company provided 2019 guidance that was below our estimates. Recurring industry headwinds such as pharmacy reimbursement pressure, lower brand inflation and challenges within long-term care (LTC) are the primary reasons for the shortfall. The company will also be affected by rebate guarantees, which management mentioned in early January as a potential headwind.”
According to TipRanks.com, Halper is a top 100 analyst with an average return of 20.6% and a 67.8% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Evolent Health.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for CVS Health with a $86.50 average price target, a 34.7% upside from current levels. In a report issued on February 7, Morgan Stanley also maintained a Buy rating on the stock with a $100 price target.
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Based on CVS Health’s latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $47.27 billion and net profit of $1.39 billion. In comparison, last year the company earned revenue of $48.39 billion and had a net profit of $3.28 billion.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock.
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CVS Health Corp. engages in the provision of health care services. It operates trough the following segments: Pharmacy Services, Retail or Long Term Care, and Corporate. The Pharmacy Services segment offers pharmacy benefit management solutions. The Retail or Long Term Care segment includes selling of prescription drugs and assortment of general merchandise.
