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CVS Health  (CVS) shares rose nearly 3.84% Wednesday after the healthcare company was initiated with an outperform rating and $76 price target by Bernstein analyst Lance Wilkes. 

The price target represents a 41% upside from the stock's opening price Wednesday of $55.61. 

Wilkes said he believes that CVS is currently undervalued with its balanced near-term earnings growth, long-term prospects for Aetna and a retail care delivery strategy making it an attractive company. 

The analyst believes that CVS and Aetna will have leading capability in value-based care, but Wilkes also believes CVS will need to deploy $10 billion in capital over the next five to seven years to build capability. 

While Wilkes expects CVS/Aetna to be the long-term winner in healthcare, the company's retail pharmacy business is expected to have stable volume growth but compressed volumes. 

CVS is a holding in Jim Cramer's Action Alerts PLUS charitable trust

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