Citigroup Reiterates CVS Rating Upon Senior Exec Appointment

CVS Caremark CVS announced that it has appointed two of its senior Executives (Mike Bloom, EVP Merchandising and Supply Chain, and Scott Baker, EVP Internal Operations and Real Estate) as Interim Co-Presidents of CVS/Pharmacy, Citigroup reports. “Recall, that the company had originally appointed Hank Mullany, the former EVP and President of Walmart North, to the role in December 2010,” Citigroup writes. “However, WMT filed a lawsuit stating that Mr. Mullany had violated his noncompete agreement that barred him from working for a competitor for two years. We believe that CVS weighed its options and decided to withdraw its offer of employment due to the uncertainty of the court proceedings. “We believe the appointments of Mr. Bloom and Mr. Baker show the depth of CVS' bench and we expect the company to find an appropriate executive to fill the role eventually. We reiterate our Buy (1M) rating on CVS.” CVS Caremark closed Tuesday at $35.14.