The action comes after the company on Thursday announced the acquisition of the pharmacy services provider Omnicare (OCR) in a deal worth $12.7 billion. The deal is expected to extend CVS Health's operations in dispensing prescription drugs to assisted-living and other long-term care centers, The New York Times reported.
"We view the acquisition positively as it bolsters Specialty RX and provides more access to desirable senior patients," Jefferies analysts said.
The purchase allows CVS to broaden its reach in the specialty pharmacy arena, as about a quarter of Omnicare's net sales in 2014 came from its specialty unit, the Times said.
In Friday's early morning trading, shares of CVS are slightly down 0.01% to $103.68.
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, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins."