Goldman Has Buy Rating On CVS Caremark (CVS)

Goldman Sachs has a Buy rating and a $41 price target on CVS Caremark Corporation CVS. In a note sent to investors Goldman writes, "We like the PBM asset, despite challenges from channel conflict. We see stabilization in PBM operations, and prospects for a sharp turn in 2012; our 2012E looks for above- consensus growth. Valuation appears to discount ongoing PBM challenges, creating the investment opportunity. Our SOTP analysis suggests limited downside risk even if the strategy unravels." Shares of CVS gained 10 cents yesterday to close at $32.52.