Citi Lowers Price Target On CVS (CVS)

Citi Investment Research lowered its price target on CVS Caremark Corporation CVS to $41 from $42 after the company reported earnings. It continues to rate shares at Hold. In a note to clients, Citi writes, "We are lowering our 4Q10 EPS est. to $0.79, vs. $0.81 prev., to reflect lower retail and PBM revenues and $35-40M of PBM streamlining costs. We are lowering our 2010 EPS est. to $2.69, vs. $2.71 prev., and our 2011 EPS est. to $2.94, vs. $3.02 prev. (see Fig. 4 for details). We are lowering our tgt. price to $41, vs. $42 prev. (our ~14x target forward P/E multiple is unchanged)." Shares of CVS gained 34 cents yesterday to close at $30.87, a gain of 1.1%.