CVS Health Corporation (CVS)

[FUNMAN]

CVS earns positive views from analysts after Q1 results beat expectations • 2:16 PM

After a better-than-expected Q1 earnings report for 2021 lifted its shares ~4.4% yesterday, CVS Health (CVS +2.3%) has continued its upward momentum today as several Wall Street analysts raised its price target.

RBC Capital Markets reiterates the outperform rating and raised the price target by ~13.8% to $91.00 per share indicating a premium of ~12.2% to the last close.

Encouraged by the progress of the company’s integrated model, Analyst Anton Hie expects room for more upside in shares assuming earnings growth to accelerate further to reach the management’s targets.

Jefferies reaffirms the buy rating and the price target upped to $95.00 from $90.00 per share implies an upside of ~17.1% to the previous close.

Despite the negative impact on cold, cough, and flu products due to COVID-related headwinds, the analyst Brian Tanquilut notes the recent market share gains made by the company.

Meanwhile, maintaining the overweight rating Cantor Fitzgerald has raised the price target by ~2.2% to $92.00 per share implying an upside of ~13.4% to the last close.

Pointing to the company’s healthy free cash flow generation, the analyst Steven Halper expects CVS to reach its post-merger leverage targets.

With a neutral rating on the stock, Seeking Alpha contributor Geoff Considine argued that CVS was prioritizing its deleveraging efforts ahead of dividend growth.