Two major firms lifted CVS Health’s price target citing reduced PBM reform uncertainty and stable earnings potential in key segments.
Morgan Stanley and Bernstein increased their price targets for CVS Health (NYSE:CVS) to $106 from $93 and $94, respectively, maintaining bullish ratings. The adjustments follow perceived progress in the company’s Medicare Advantage turnaround and reduced risks from pharmacy benefit manager (PBM) reforms.
Analysts noted that recent regulatory settlements and legislative actions have lessened uncertainty around CVS’s earnings stability. The firm’s exposure to Medicare Advantage and its pharmacy services segment were highlighted as key drivers for the revised outlook.
CVS operates across healthcare benefits, health services, and pharmacy segments, positioning it for potential growth amid industry shifts. The upgrades reflect confidence in the company’s ability to navigate regulatory challenges and capitalize on market opportunities.