UPDATE: Credit Suisse Maintains Outperform, Raises PT to $48 on CVS
Credit Suisse reiterates its Outperform rating on CVS (NYSE: CVS) and raises its price target to $48 from $44 as it sees possibility for further upside on the stock.
Credit Suisse says, "We believe CVS is set up for another year of strong outperformance in 2012. While investors have grown increasingly concerned that upside may be more limited following the stock's recent run, we see several drivers of further appreciation. Consensus estimates for 2012 look beatable given numerous industry/company specific tailwinds. We also expect another strong PBM selling season, which should drive further momentum in 2013. Lastly, we believe the view on valuation by some investors is too narrow, as CVS is still cheap when compared to other consumer staple alternatives."
CVS closed at $41.79 per share on Monday.
