These Analysts Boost Their Forecasts On CVS Health Following Upbeat Earnings

CVS Health Corp CVS reported upbeat earnings for its fourth quarter on Wednesday.

The company posted fourth-quarter sales of $97.71 billion, beating the consensus of $97.19 billion.

Adjusted EPS of $1.19 decreased from $2.12 in the prior year, beating the consensus of $0.93, primarily due to a decline in the Health Care Benefits segment’s operating results, which reflect continued utilization pressure and the unfavorable impact of the Company’s Medicare Advantage star ratings for the 2024 payment year.

“Our integrated model allows us to uniquely deliver a simpler, connected experience that saves time, saves money, and improves health. We have continued to see growth in key areas of our business, including the Pharmacy and Consumer Wellness segment, while we address the industry-wide challenges that have impacted our Health Care Benefits segment. Through the continued dedication of our colleagues, we will be positioned for strong performance in 2025 as we deliver simply better care for consumers while improving outcomes and reducing costs.”

CVS Health said it expects fiscal year 2025 adjusted EPS of $5.75-$6.00 versus consensus of $5.96. The company expects GAAP EPS of $4.58 to $4.83, with cash flow from operations guidance of approximately $6.5 billion.

CVS Health shares gained 15% to close at $63.22 on Wednesday.

These analysts made changes to their price targets on CVS Health following earnings announcement.

Leerink Partners analyst Michael Cherny upgraded CVS Health from Market Perform to Outperform and raised the price target from $55 to $75.
Barclays analyst Andrew Mok maintained CVS Health with an Overweight and boosted the price target from $71 to $73.
Truist Securities analyst David Macdonald maintained the stock with a Buy and raised the price target from $60 to $76.

Considering buying CVS stock? Here’s what analysts think: