Oppenheimer Thinks CVS Health’s Stock is Going to Recover

Oppenheimer analyst Michael Wiederhorn maintained a Buy rating on CVS Health (CVS) today and set a price target of $85. The company’s shares opened today at $63.67, close to its 52-week low of $60.14.

Wiederhorn commented:

“CVS reported 4Q EPS of $2.14 (GAAP: ($0.37)) vs. the Street’s $2.09. Adj. results primarily exclude a goodwill charge to the LTC segment, which continued to provide disappointing results and is also expected to pressure 2019 guidance. Looking toward 2019, CVS reaffirmed its Aetna synergy targets, expected to be $300-350M in 2019 and $750M in 2020. However, due to a combination of the LTC pressure, investments in the business, managed care conservatism and pharmacy pricing compression, CVS provided 2019 EPS guidance of $6.68-6.88 (Street: $7.35) and Q1:19 EPS guidance of $1.49-1.53 (Street: $1.64). Nevertheless, the company remained bullish on the long-term outlook for the business, including the contribution from Aetna, and the subsiding legacy pressures by 2020.”

According to TipRanks.com, Wiederhorn is a top 100 analyst with an average return of 15.8% and a 70.1% success rate. Wiederhorn covers the Services sector, focusing on stocks such as The Ensign Group, Centene Corp, and UnitedHealth.

CVS Health has an analyst consensus of Moderate Buy, with a price target consensus of $87.64, representing a 37.6% upside. In a report issued on February 7, Morgan Stanley also maintained a Buy rating on the stock with a $100 price target.

See today’s analyst top recommended stocks >>

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 54 insiders, corporate insider sentiment is negative on the stock.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.