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 reiterated a Buy rating on the stock and has a $80.00 price target.
Allen Lutz has given his Buy rating due to a combination of factors, primarily driven by the recent announcement from the Centers for Medicare & Medicaid Services (CMS) regarding the 2026 Medicare Advantage rate increase. The finalized rate of 5.06% exceeded initial expectations, which is a positive development for CVS Health as it supports potential margin expansion.
Lutz believes that the higher-than-anticipated rate update indicates a supportive stance from the administration towards Medicare Advantage, which could benefit CVS in the long term. Additionally, CVS is well-positioned to enhance its earnings through margin normalization within its Aetna segment. The confidence in CVS’s ability to improve margins over the coming years has led to an increased price objective of $80, reflecting a positive outlook on the company’s financial trajectory through 2026.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $80.00 price target.