Piper Sandler initiated coverage on CVS Health stock with a Buy rating and a price target of $72 (25.7% upside potential). Shares The of the drug store chain and health care services company are up about 1% in early morning trading.
Piper Sandler analyst Sarah James believes that CVS Health is well-positioned to transform healthcare access and quality as well as reduce costs.
CVS Health (CVS) plans to add more than 2,000 new COVID-19 drive-thru test sites in selected CVS pharmacy locations in the US. The company has the largest number of independently run COVID-19 test sites in the country. It opened its first test site in March and the addition of new test sites will bring the total test sites in the country to more than 4,000 by mid-October.
CVS slashed its 2020 earnings guidance this week, citing losses incurred from early extinguishment of $6 billion in debt during Q3 of 2020. The company now expects 2020 EPS in the range of $5.16 to $5.29, down from $5.59 to $5.72. The company maintained its adjusted EPS outlook in the range of $7.14 to $7.27. (See CVS stock analysis on TipRanks).
Currently, the rest of the Street has an optimistic outlook on the stock. The Strong Buy analyst consensus is based on 8 Buys and 2 Holds. The average price target of $83.63 implies upside potential of about 46% to current levels. Shares have declined 22.9% year-to-date.
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