- As part of a broader coverage of 15 companies in the Healthcare Services sector, Cantor Fitzgerald initiated reporting CVS Health Corp CV with a target price of $87 and an overweight rating.
- Once assembled, CVS, mean health, Oak Street Health Inc Oshand Carbon (JV) can create a momentum that offers industry-leading, consumer-centric technology and ease of access, improved commercial and Medicare brand equity, higher NPS (Net Promoter Score) and significantly more opportunity.
- Also read: The governor of New York and the attorney general are demanding that three pharmacy operators be required to have access to abortion drugs.
- The analyst sees potential for a bullish scenario with long-term revenue synergies.
- Cantor says adj EPS of $9.00 in 2024 and $10.00 in 2025, a 6.6% CAGR from the adjusted baseline of $8.25 in 2022, from low- to mid-single-digit healthcare benefits and expects mid-single-digit pharmacy growth, OSH closes 2023, and SGFY closes 2Q23 with positive earnings contribution in 2024.
- The analyst estimates that a bullish scenario could generate $10.50-$11.00.
- Led by Vijay Patel, the analyst writes that the portfolio could grow to an alpha-generating and self-funding $1 billion portfolio. The selection is a wise recognition of competitive advantage and sustainable advantage.
- price action: CVS shares are down 0.52% to $72.87 on the latest check Friday.
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