It's hard not to notice the sudden interest Wall Street has taken in shares of CVS Health Corporation (CVS) - Get Report . The stock is up almost 4% Friday after several analysts bumped their price targets on the stock.
The retailer is now up a whopping 7.7% so far on the year, which has only seen four trading days. "They are re-adjusting their business model and I think it's not done going higher," TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.
Don't forget, CVS recently announced its $69 billion acquisition of Aetna (AET) , a move that underscores how the company is trying to transform itself for a new future. Given the strides that Amazon.com, Inc. (AMZN) - Get Report is taking in retail, CVS' adaption shouldn't come as much of a surprise.
Investors had turned their back on a number of other retailers that didn't deserve it, he reasoned, naming stocks like Home Depot (HD) - Get Report , Costco (COST) - Get Report and Kroger (KR) - Get Report .
- Don't Let Mega-Deals Like CVS Buying Aetna Keep You Away From Doing This
- Amazon Buying Walgreens Could Be Next Big Hookup Now That CVS Bought Aetna
- Done Deal: CVS to Buy Aetna for $69 Billion
"I like it very much," Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said of CVS. He's not alone, either.
SunTrust analysts hiked their price target to $90 from $85, while analysts at Morgan Stanley bumped their target to $88 from $81.
At $90, we're talking about 15.4% upside from current levels. And that's after the stock's rowdy start to 2018, too. In other words, it could still be a big year for CVS stock.
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At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.