Truist has increased its price target for CVS Health (CVS, Financial), elevating it from $76 to $82 while maintaining a Buy rating on the stock. This adjustment comes as part of a broader analysis of the Healthcare Services sector ahead of the first quarter results.
Despite the ever-changing market conditions, the sector, including CVS Health, appears to be in a strong position. Its strengths lie in its substantial scale, predominant domestic operations, capabilities in generating attractive free cash flow, and a generally defensive nature. These factors are likely to support the sector in navigating any economic volatility.
Additionally, regulatory developments are receiving considerable attention. However, recent changes in the Medicare Advantage final rule have reinforced expectations for an improved operational environment for companies in this space, as highlighted by analysts in a research note.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for CVS Health Corp (CVS, Financial) is $71.56 with a high estimate of $80.00 and a low estimate of $48.01. The average target implies an upside of 3.76% from the current price of $68.97. More detailed estimate data can be found on the CVS Health Corp (CVS) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, CVS Health Corp's (CVS, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CVS Health Corp (CVS, Financial) in one year is $87.74, suggesting a upside of 27.21% from the current price of $68.97. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CVS Health Corp (CVS) Summary page.
