On Tuesday, CVS Health Inc. (NYSE:CVS) projected 2025 revenue of at least $400 billion versus the consensus of $394.59 billion, with operating income of $4.37 billion to $4.54 billion.
The drug retailer raised its sales guidance to at least $397.3 billion.
Analyst Take
Bank of America said it attended CVS's investor day. Analyst Allen Lutz on Wednesday wrote, "We come away incrementally positive on the enterprise growth trajectory. We also believe CVS's emerging consumer app makes CVS's pharmacy assets a differentiator that can drive structurally higher retention for Aetna and Caremark over time."
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Analyst Lutz said CVS remains firm on its plan to restore target margins at Aetna, even as its Medicare Advantage margin outlook has been reset to 3%–4% for 2025, down from 4%–5% in 2023.
BofA reiterates the Buy rating on CVS, with a price forecast of $100.
The company is directing more capital into data and analytics to strengthen underwriting and sharpen pricing. Those capabilities already enabled CVS to spot early ACA exchange pressures in 2025 and exit the market quickly.
Management believes these investments will speed progress toward target margins and reduce volatility from new membership cohorts.
At its investor event, CVS Health unveiled a new suite of technology products and services centered on "Engagement as a Service," aimed at creating an open, integrated consumer engagement platform across its businesses and select industry partners.
BofA says CVS's retail pharmacy unit is positioned to speed up adoption of its consumer app, supporting higher long-term engagement and retention.
The company plans to launch a unified app in 2026 that brings together Aetna's medical benefits, Caremark's pharmacy benefits, and CVS' retail pharmacy services in a single platform.
Other Analyst Ratings
Baird maintains CVS Health with an Outperform and raises the price forecast from $82 to $92.
Morgan Stanley maintains an Overweight rating for CVS Health and raises the price forecast from $89 to $93.
Mizuho maintains CVS Health with an Outperform and raises the price forecast from $88 to $95.
Barclays maintains CVS Health with an Overweight rating and raises the price forecast from $87 to $93.
Piper Sandler reiterates CVS Health with an Overweight rating and raises the price forecast from $99 to $101.
CVS Price Action: CVS Health shares were up 1.09% at $79.28 at the time of publication on Wednesday, according to Benzinga Pro data.
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