CVS Health price target lowered to $104 from $111 at BofA

BofA analyst Michael Cherny lowered the firm’s price target on CVS Health (CVS) to $104 from $111 and keeps a Buy rating on the shares after the company and Oak Street Health (OSH) announced that they expect CVS’s acquisition of Oak Street to close in the first half. CVS, which had previously expected the deal to close in 2023, said it plans to update its full year 2023 guidance on its Q1 earnings call scheduled for May 3 to account for the Signify Health (SGFY) that closed yesterday as well as the closing of the Oak Street deal in the first half and associated financing impacts. Management noted that Signify is accretive and Oak Street is dilutive and were previously included in its announced 2024 and 2025 EPS targets, said BofA in a note partially titled "A little short-term dilution pain for LT integration gain."