J.P. Morgan Reports On CVS Caremark Merger

J.P. Morgan has issued a report on the fourth anniversary of the CVS Caremark CVS merger.

According to J.P. Morgan, “In our view, the strategy behind the merger is not inherently flawed, and we believe that Caremark has proven to be a valued asset to the retail pharmacy operation. As such, we think it is unlikely the company would voluntarily spin off the Caremark asset in the near term. That said, while some have argued in favor of separating the two companies to unlock value, we note that a sale would likely have sizeable FTC concerns, while a spin has the potential for negative synergies on both segments.”

CVS has an Overweight Rating and a $42 PT.

CVS was traded at $33.13 at closing yesterday.