CVS Health (CVS) Stock Price Target Lowered at Oppenheimer
NEW YORK (TheStreet) -- CVS Health's (CVS) - Get Report price target was lowered to $115 from $122 at Oppenheimer on Friday evening.
The firm maintained its "outperform" rating on the stock.
Although CVS reported "good" third quarter 2015 earnings results, the company's margin outlook and unclear organic growth in operating profits next year will likely weigh on the stock, the firm said in an analyst note.
Lower-margin new pharmacy benefit management (PBM) business and Medicare and Medicaid business are negatively impacting 2016 margins, but the company is nonetheless "well-positioned" to continue its earnings growth, Oppenheimer adds.
On Friday, the retail pharmacies giant reported earnings of $1.28 per share on revenue of $38.64 billion for the most recent quarter. Analysts had forecast for earnings of $1.29 per share on revenue of $37.89 billion.
Shares of the company are up by 0.07% to $98.86 in early morning trading on Monday.
Separately, TheStreet Ratings team rates CVS HEALTH CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate CVS HEALTH CORP (CVS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: CVS
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