01:55 PM EDT, 05/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our target to $62 from $76, 6.9x our 2025 EPS estimate, a discount to CVS's historical forward average due to utilization headwinds. We lower our 2024 EPS forecast to $7.88 from $8.40 and widen our 2025 forecast to $9.00 from $8.88. Q1 EPS of $1.31 vs. $2.20 missed consensus by $0.39 due to broad-based utilization pressure CVS's Medicare Advantage business from higher outpatient and supplemental benefits, in addition to inpatient pressure from RSV vaccines and other pharmacy benefits. These trends contributed to a high medical benefit ratio (medical expenses/premiums) of 90.4%, up 580 bps Y/Y. Today's share price performance, down 17%, reflects CVS's tempered outlook for 2024 performance, with adj. EPS guidance revised downward to "at least $7.00" from "at least $8.30" previously, due to CVS's view that most of the utilization pressure observed in the Health Care Benefits segment during Q1 will persist throughout 2024. We believe today's share price adjustment fully incorporates this new outlook.