-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month price target to $100 from $80, 13.5x our 2026 EPS estimate (raised to $7.40 from $7.17; 2027 estimate up to $8.26 from $8.18), above CVS's three-year and five-year average forward multiples of 9.7x and 10.3x, respectively. While headwinds remain for CVS's insurance operations (Aetna) within a challenging medical cost environment, CVS is executing well within its longer-term turnaround strategy with indications of margin improvement, in our view. We also see debt levels declining from recent highs following two major acquisitions in 2023. Although the Pharmacy & Consumer Wellness segment's adjusted operating income declined 8.8% Y/Y to $1.20B during Q1, we see this as the result of seasonal impacts (less severe flu season) and look favorably on CVS raising segment adjusted operating income guidance for 2026 by 1.5%'given stronger performance expectations for the rest of the year. Shares yield 3.1%. We upgrade our rating to Buy from Hold.