Credit Suisse Lifts Price Targets For Drug Distributors After Solid Q2 Performance

Credit Suisse raised the price target on Cigna Corporation CI from $315 to $329. The analyst raised the EPS estimate for 2022/2023 to $22.95/25.30.
Credit Suisse notes that despite the positive trends experienced in 1H22, Cigna maintains a prudent outlook for the rest of the year.
The management noted that, while utilization came in favorable in 2Q22, the company is not extrapolating this to 2H22 and is expecting a more normal utilization pattern, in-line with historical norms.
Credit Suisse beefed up the price target for McKesson Corporation MCK from $377 to $385.
The company highlighted good performance across the board in the quarter, driven in part by higher Covid contributions and strength from national account partners.
The company expects the extended government Covid contract contribution to be evenly split between quarters for the life of the agreement.
Credit Suisse raised the price target for CVS Health Corp CVS to $117 from $113, including higher utilization and worsening macroeconomic conditions. See the Q2 earnings.
CVS focuses on M&A in primary care, home health, and physician enablement. CVS sees physician enablement as working with providers to enable them to bear risk.
Home care offers considerable opportunity in the digital age and is important in coordinating patient care.

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