Key Highlights:
- CVS Health (CVS, Financial) plans to close over 20 pharmacies in Arkansas following new legislation.
- Analysts provide a bullish price target for CVS with potential upsides.
- GuruFocus suggests a significant upside based on GF Value estimates.
CVS Health Corp. (CVS) is responding strategically to Arkansas's recent legislative shift that restricts pharmacy benefit managers (PBMs) from owning or operating pharmacies, becoming the first state in the U.S. to enact such a regulation. This move aims to mitigate concerns about PBMs' influence on drug pricing, leading CVS to shutter over 20 of its pharmacy locations in the state.
Analyst Predictions and Insights
Wall Street analysts are showing a cautiously optimistic stance on CVS Health Corp. Over a 12-month horizon, 24 analysts have provided price targets, resulting in an average estimate of $74.84. With the highest projections reaching $90.00 and the lowest at $64.00, the average prediction indicates a potential upside of 11.72% from the current trading price of $66.99. For more comprehensive insights, visit the CVS Health Corp (CVS, Financial) Forecast page.
The analytical consensus from 29 brokerage firms rates CVS Health Corp. at an 'Outperform' status, with an average rating of 2.2 on a scale where 1 is a Strong Buy and 5 is a Sell. This rating suggests a positive outlook from the investment community.
Evaluating CVS's GF Value
When it comes to intrinsic valuation, GuruFocus estimates CVS Health Corp's GF Value at $87.77 for the coming year, projecting a sizable upside of 31.02% from the current share price of $66.99. This valuation is derived from historical trading multiples, past business growth, and future performance forecasts. To dive deeper into CVS's fair valuation and potential, further details are available on the CVS Health Corp (CVS, Financial) Summary page.
