BofA lowered the firm’s price target on CVS Health (CVS) to $63 from $77 and keeps a Buy rating on the shares. The final end-of-year healthcare package released Tuesday includes provisions around PBM reforms and extensions for expiring healthcare programs, but President-elect Trump recently announced he opposes the year-end deal so it is unclear if it will go through, the analyst tells investors. The firm is updating its 2025 and out-year adjusted EPS estimates to reflect greater conservatism in the Health Care Benefits segment and applying a lower multiple due to its view that negative PBM sentiment may persist. However, the firm reiterates a Buy as CVS shares trade at a trough valuation on trough earnings, which it sees “creating upside asymmetry despite headline risks.”
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Read More on CVS:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
