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Research Alert: CFRA Keeps Hold Opinion On Shares Of Cvs Health Corporation
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Cvs Health Corporation
Nov 11, 2025 9:10 AM

11:45 AM EST, 11/11/2025 (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 lift our 12-month target price by $17, to $85, valuing CVS shares at 10.6x our newly initiated 2027 EPS estimate of $8.05 and at 11.9x our 2026 EPS estimate of $7.15 (raised today by $0.08), versus the shares' 1YR average forward multiple of 10.4x and the disparate peer group average of 13x. We also raise our 2025 EPS estimate by $0.25 to $6.60. CVS posted Q3 adjusted EPS of $1.60 vs $1.09 prior year, beating our $1.39 estimate and $1.36 consensus view. Revenue rose 7.8% to $102.8B, exceeding expectations with consistent growth across segments. Health Care Benefits staged a significant turnaround with Q3 operating profits of $314M vs $924M loss in the prior year, stemming from improved Medicare Advantage star ratings and a medical benefit ratio improvement to 92.8% from 95.2%. We maintain our Hold rating, reflecting CVS's attractive valuation and strong balance sheet amid a transition period as it loses the Centene contract and integrates acquisitions. In our view, CVS is undergoing much-needed restructuring given industry pressures, including plans to close 271 additional stores in 2025. We believe additional measures may be necessary to improve margins as CVS transforms.

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