From Yahoo Finance · · 1m
CVS Shares Trade Below Wall Street Targets
CVS Health stock trades near $94, 19% below analyst target and 50% below model's $141 base case
In brief
CVS Health stock trades near $94, 19% below analyst target and 50% below model's $141 base case CVS Health's valuation gap persists due to strong earnings but concerns about PBM regulation and drug pricing rules Originally reported by Yahoo Finance.
Current Price Gap
CVS Health trades near $94, 19% below $116 analyst target and 50% below $141 model base case
Recent Earnings Boost
Q2 earnings beat consensus by 38% with Aetna's medical benefit ratio improving to 87.4%
Management Guidance
Raised 2026 adjusted EPS to $7.90-$8.10 range and operating cash flow to at least $11.5 billion
Valuation Gap
Forward P/E of 11x suggests potential for 49.6% upside from current price to $141 base case
PBM Threats
340 billion pressure and lower selling season retention threaten to undermine earnings growth
Regulatory Risks
PBM re-regulation and drug pricing rules could escalate if political appetite increases
Next Checkpoint
Q3 2026 earnings expected November 4, 2026 with focus on Aetna's medical benefit ratio
What to remember
CVS Health's valuation gap persists due to strong earnings but concerns about PBM regulation and drug pricing rules
