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.