CVS Health (CVS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Allen Lutz from Bank of America Securities maintained a Buy rating on the stock and has a $75.00 price target.
Allen Lutz has given his Buy rating due to a combination of factors that highlight CVS Health’s strategic initiatives and potential for improved profitability. The introduction of new, smaller store formats is a significant move, as these stores are designed to focus on health-related products and exclude non-essential consumer items. This shift is expected to reduce rental costs and enhance working capital, thereby increasing profitability per store over time.
Additionally, CVS’s management is actively working on initiatives like the CostVantage model to address structural challenges in the pharmacy business. These efforts are aimed at improving the Pharmacy and Consumer Wellness segment, potentially allowing the company to surpass its long-term guidance. By focusing on core pharmacy operations and additional value-added services, CVS is positioned to strengthen its market presence and financial performance. As a result, Allen Lutz maintains a Buy rating with a price objective of $75.
According to TipRanks, Lutz is a 5-star analyst with an average return of 9.4% and a 63.83% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Teladoc, and Cardinal Health.
In another report released on February 24, Leerink Partners also reiterated a Buy rating on the stock with a $75.00 price target.
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