03:52 PM EDT, 08/05/2024 (MT Newswires) -- CVS Health ( CVS ) is expected to report lower-than-expected Q2 earnings per share amid the weakening of pharmacy and front-end trends in the quarter following the company's strong retail in Q1, UBS said in a note Monday.

UBS lowered its Q2 EPS estimate for CVS to $1.69 from $1.78, versus the consensus estimate of $1.74. The investment firm's updated guidance, however, still falls within CVS' commentary that H2 EPS will account for 55% to 60% of full-year guidance, according to the note.

CVS will report its Q2 financial results on Wednesday.

UBS said buy side expectations for 2024 EPS are ranging from $6.50 to $6.80. The firm revised its 2024 EPS estimate for CVS to $6.86 from $7.01, compared with the consensus of $6.98 and the company's guidance of more than $7.

"A best-case for the stock would be to maintain the $7+ guidance and provide credible evidence supporting the shallow [edical loss ratio] H2 ramp," UBS said.

UBS rated CVS stock neutral, with a price target of $60.

CVS shares were down 2.7% in recent trading.

Price: 57.72, Change: -1.61, Percent Change: -2.71