03:47 PM EST, 02/10/2025 (MT Newswires) -- CVS Health ( CVS ) faces hurdles in its health care benefits segment, dragging the 2025 fiscal year earnings estimate lower, UBS Securities said Monday in a report.

The full-year earnings outlook was cut to $5.73 a share from $6.25 with forecasts of a 500,000 reduction in at-risk members in the commercial segment and a 10% drop in Medicare Advantage membership, UBS said.

Regulatory prospects for the pharmacy benefit management business "remains a debate for the stock, but we think risk of meaningful reform here is low despite recent headlines," UBS said.

"There is little consensus on the potential ongoing earnings and cash flow risk" from the acquisitions of Oak Street Health and Signify Health "with some investors fearing this could be a more meaningful overhang than is maybe baked in," UBS said.

Department of Justice lawsuits against CVS and Walgreens Boots Alliance ( WBA ) related to allegations of illegal opioid distribution "have again reemerged as a headline, so framing the scope of the potential liability may arise," UBS said. "Feedback to our note was that our $2 billion to $3 billion maximum liability estimate was overstated."

UBS cut its price target on CVS stock to $59 from $62 and maintained its neutral rating.

CVS shares rose 0.3% in recent Monday trading.

Price: 54.15, Change: +0.15, Percent Change: +0.27