The firm said it began coverage on the health and wellness products and pharmacy retailer based on its belief CVS's focus on health will be able to drive growth.
Oppenheimer set a $119 price target on CVS Health stock.
Shares of CVS Health are down by 0.16% to $103.63 in pre-market trading this morning.
"CVS's efforts to transform itself into a health-focused company are well under way and we are starting to see positive results in market share gains and opportunities," the firm said in an analyst note.
"We believe the company's focus on solutions beyond the traditional pharmacy will open new opportunities due to the increasing consumerization of health care and the move toward alternate reimbursement models," Oppenheimer continued.
Insight from TheStreet Research Team
TheStreet's David Katz commented on CVS in a recent post on RealMoneyPro.com Here is what Katz has to say about it:
Monday morning, CVS Health and Target (TGT) announced a deal whereby CVS will pay $1.9 billion to take over Target's 1,600+ pharmacies and 80+ Minute Clinics. We like the deal and believe it is a win-win for both companies.
From CVS's perspective, the deal is a highly effective way to increase its store base and customer count. Management stated on the call that each store will cost one-fifth of what it would cost CVS to build each store on its own.
In addition, CVS believes that it will increase each customers' health outcomes and convenience due to its pharmacy advisory services, mail order options and Specialty Connect platform.
-David Katz 'Target-CVS Deal Hits Mark in Both Aisles' Originally Published on 6/16/2015 on Real Money Pro.
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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, 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."
You can view the full analysis from the report here: CVS Ratings Report