The firm said it initiated coverage on the drugstore retail chain based on a valuation call.
"While we believe the company is on track to achieve the top end of its long term growth guidance and should benefit from its multi-channel business model, strong growth initiatives that are driving share gains, and industry tailwinds, we think much of this growth is reflected in the current stock price," Citigroup said.
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Shares of CVS Health are lower by 0.41% to $90.88 at the start of trading on Wednesday morning.
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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."