CVS Health price target lowered to $58 from $68 at RBC Capital

RBC Capital analyst Ben Hendrix lowered the firm’s price target on CVS Health (CVS) to $58 from $68 and keeps an Outperform rating on the shares after its Q3 results and management changes announced last week. Following the company’s withdrawal of 2024 guidance and leadership changes, uncertainty looms large for CVS as investors focus on 2025, the analyst tells investors in a research note. With premium deficiency reserves recorded in the quarter, utilization is also higher than previously expected, prompting investor concerns around 2025 pricing and utilization, RBC adds, noting however that it remains at Outperform given the stock’s “depressed” valuation.