Goldman Sachs Revisits Investment Thesis On CVS Caremark

Goldman Sachs reported that, as the notion of a breakup of CVS into separate drugstore and PBM components gets more attention in the press (CNBC and Bloomberg last week), Goldman Sachs thinks it timely to revisit its investment thesis for the firm. “Our $40 12-month price target is based on 60% risk/reward, 20% DCF, and 20% sum-of-the-parts valuation.” CVS Caremark closed yesterday at $36.23.