UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on CVS Caremark Corporation
In a report published Friday, Credit Suisse Group reiterated its Outperform rating on CVS Caremark Corporation (NYSE: CVS), and raised its price target from $50.00 to $55.00.
Credit Suisse noted, “CVS' surprising strong guidance at its analyst day yesterday provided fuel to a story that looked be running out of gas in 2013. The company dispelled concerns about increasing headwinds from difficult comparisons, a diminishing generic wave in retail, and tougher overall operating environment by setting the initial bar well above street expectations ($3.84-3.98 vs. consensus of $3.79 and our estimate). Given the company's return to its ‘beat and raise' roots in 2012, it seems realistic to assume that the outlook may even be somewhat conservative...We also believe the company once again laid out a compelling case as to how it is well positioned to grow and take share through differentiation in the ever changing pharmacy services landscape. While momentum should clearly slow in the not too distant future, we believe the stock still has upside as investors digest yesterday's news and near-term earnings upside likely continues. We raised our target price to $55 from $50.”
CVS Caremark Corporation closed on Thursday at $48.50.
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