Expert View: CVS Health Through the Eyes of 11 Analysts – CVS Health (NYSE:CVS)

Analyst Ratings for CVS Health CVS in the last quarter ranged from bullish to bearish as provided by 11 analysts.

The table below provides a snapshot of their recent ratings, showing how sentiment has evolved over the past 30 days and comparing them to previous months.

 

  Bulls Somewhat bully Indifferent Somewhat bears bears
Total marks 1 6 4 0 0
Last 30D 1 0 0 0 0
1 month ago 0 2 3 0 0
2 million ago 0 1 1 0 0
3 million ago 0 3 0 0 0

 

Analyst estimates for 12-month price targets offer additional insight, showing an average target of $79.18, with a high estimate of $94.00 and a low estimate of $58.00. This current average is down 8.99% from the previous average price target of $87.00.

Decoding Analyst Ratings: A Detailed Look

The perception of CVS Health by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent ratings and revisions to ratings and price targets.

 

analyst Analytical firm Action taken Rating Target current price Previous target price
Ann Hines Mizuho It degrades Buys $72.00 $86.00
Michael Cerny Leerink partners Announces Market performance $60.00
Sarah James Cantor Fitzgerald It degrades Neutral $58.00 $87.00
Sarah James Cantor Fitzgerald Supports Overweight $87.00
Stephen Baxter Wells Fargo It degrades Equal weight $76.00 $83.00
Sarah James Cantor Fitzgerald Supports Overweight $87.00
Jessica Tassan Piper Sandler Increases Overweight $94.00 $93.00
Andrew Mock Barclays Announces Equal weight $78.00
Michael Cerny Leerink partners Announces They excel $88.00
Sarah James Cantor Fitzgerald Supports Overweight $87.00
Ben Hendrix RBC Capital It degrades They excel $84.00 $86.00

 

Key insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they “hold”, “raise” or “lower” their position, it indicates their reaction to recent developments related to CVS Health. This insight provides a snapshot of analysts’ perspectives on the company’s current state.
  • rating: Analysts give quality ratings to the stock ranging from Outperform to Underperform. These estimates reflect analysts’ expectations of CVS Health’s relative performance compared to the broader market.
  • Target Objectives: Analysts examine the dynamics of price targets, providing predictions for the future value of CVS Health shares. This research reveals changes in analysts’ expectations over time.

For valuable insight into CVS Health’s market performance, take a look at these analyst estimates along with key financial metrics. Be well informed and make informed decisions using our rating table.

Stay up-to-date with CVS Health analyst ratings.

An insight into the history of CVS Health

CVS Health offers a diverse array of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the U.S. CVS is also the largest pharmacy operator (acquired through Caremark), processing over 2 billion adjusted claims annually. It also operates a premium health insurer (acquired through Aetna) where it serves approximately 26 million medical members. The company’s recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all of its existing lines of business.

Disclosure of CVS Health’s financial history

Market Cap Analysis: Above industry benchmarks, the company’s market capitalization highlights a remarkable size indicative of a strong market presence.

Revenue growth: During the 3-month period, CVS Health demonstrated a positive performance, achieving a revenue growth rate of 11.89% as of December 31, 2023. This reflects a significant increase in the company’s underlying earnings. Compared to its peers, revenue growth lagged industry peers. The company achieved a growth rate that was lower than the average among competitors in the healthcare sector.

Net Margin: CVS Health’s net margin is impressive, exceeding industry averages. With a net margin of 2.18%, the company has demonstrated strong profitability and effective cost management.

Return on Equity (ROE): CVS Health’s financial strength is reflected in its outstanding ROE, which exceeds industry averages. With a remarkable ROE of 2.71%, the company demonstrates efficient use of equity capital and a strong financial position.

Return on Assets (ROA): The company’s ROA is performing excellently, exceeding industry averages. With an impressive ROA of 0.82%, the company demonstrates efficient use of assets.

Debt Management: CVS Health’s debt-to-equity ratio is below the industry average. With a ratio of 1.04the company relies less on debt financing, maintaining a stronger balance between debt and equity, which may be viewed positively by investors.

The meaning of analyst ratings explained

Benzinga tracks 150 analyst firms and reports their stock expectations. Analysts typically reach their conclusions by predicting how much money a company will make in the future, usually the next five years, and how risky or predictable that company’s revenue streams are.

Analysts attend company conference calls and meetings, study company financial statements, and communicate with insiders to publish their stock ratings. Analysts typically rate each stock once a quarter or when the company has a major update.

Some analysts publish their forecasts for metrics such as growth, earnings and revenue forecasts to provide additional guidance with their estimates. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and only offer their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along with analyst success scores in Benzinga Pro.

 

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