Credit Suisse Lifts Price Targets For Drug Distributors After Solid Q2 Performance

Credit Suisse Lifts Price Targets For Drug Distributors After Solid Q2 Performance
  • Credit Suisse raised the price target on Cigna Corporation CI from $315 to $329. The analyst raised the EPS estimate for 2022/2023 to $22.95/25.30.
  • Credit Suisse notes that despite the positive trends experienced in 1H22, Cigna maintains a prudent outlook for the rest of the year.
  • The management noted that, while utilization came in favorable in 2Q22, the company is not extrapolating this to 2H22 and is expecting a more normal utilization pattern, in-line with historical norms. 
  • Credit Suisse beefed up the price target for McKesson Corporation MCK from $377 to $385.
  • The company highlighted good performance across the board in the quarter, driven in part by higher Covid contributions and strength from national account partners. 
  • The company expects the extended government Covid contract contribution to be evenly split between quarters for the life of the agreement.
  • Credit Suisse raised the price target for CVS Health Corp CVS to $117 from $113, including higher utilization and worsening macroeconomic conditions. See the Q2 earnings.
  • CVS focuses on M&A in primary care, home health, and physician enablement. CVS sees physician enablement as working with providers to enable them to bear risk. 
  • Home care offers considerable opportunity in the digital age and is important in coordinating patient care.

Posted In: BriefsEarningsNewsHealth CarePrice TargetAnalyst RatingsGeneral