Mizuho Securities analyst Ann Hynes has maintained their bullish stance on CVS stock, giving a Buy rating today.
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Ann Hynes has given her Buy rating due to a combination of factors that suggest potential for CVS Health’s stock. The recent earnings report showed that CVS performed better than expected in the fourth quarter of 2024, with adjusted earnings per share surpassing both consensus and internal estimates. This indicates strong operational performance, particularly in the face of challenges within the Health Care Benefits segment, which managed to exceed expectations despite a decline.
Additionally, CVS’s guidance for 2025, although slightly below consensus, was received positively, as it suggests a transitional year for the company that could lead to a recovery in margins in subsequent years. The Pharmacy and Health Services segments are expected to show varying performances, with some improvement in operating margins anticipated. Overall, the positive tone of the earnings call and stabilization in healthcare utilization trends further support the optimistic outlook for the company. These factors collectively underpin Ann Hynes’s confidence in CVS’s potential for future growth.
Hynes covers the Healthcare sector, focusing on stocks such as Quest Diagnostics, Walgreens Boots Alliance, and IQVIA Holdings. According to TipRanks, Hynes has an average return of 9.3% and a 58.70% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $73.00 price target.