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CVS Health Gains Momentum: Analyst Points To Potential 4-Star Medicare Rating

Published 19/09/2023, 16:34
© Reuters.  CVS Health Gains Momentum: Analyst Points To Potential 4-Star Medicare Rating
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Benzinga - by Priya Nigam, Benzinga Staff Writer.

Shares of CVS Health Corp (NYSE: CVS) were trading higher on Tuesday, after attracting short interest earlier in the month.

Several factors are “swinging in a positive direction,” including improvements in operational issues and higher confidence in management’s outlook, according to Evercore.

The CVS Health Analyst: Elizabeth Anderson upgraded the rating for CVS Health to Outperform, while establishing a price target of $83.

The CVS Health Thesis: The company could regain a 4-star rating in its main Medicare Advantage plan, which would boost confidence in its operations, Anderson said in the upgrade note.

Check out other analyst stock ratings.

Half of the bonus payments of around $800 million to $1 billion could return by 2025, with “potential for additional upside pending final reinvestment plans,” the analyst stated.

“Currently elevated utilization trends appear to be continuing, but we see the ’24 guide as conservative enough with the $8.50-8.70 guidance incorporating ~$200-300 MM worse utilization yoy (vs. ’23),” Anderson wrote. “Also, CVS’s 2024 MA offering is now more competitive and we see mgmt’s target of 7-8% (market) growth as achievable,” she added.

CVS Price Action: Shares of CVS Health had risen by 0.62% to $71.22 at the time of publication Tuesday.

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Latest Ratings for CVS

DateFirmActionFromTo
Feb 2022Raymond JamesDowngradesStrong BuyOutperform
Dec 2021Tigress FinancialMaintainsBuy
Dec 2021MizuhoMaintainsBuy
View More Analyst Ratings for CVS

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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