B of A Securities Reiterates Buy Rating for CVS Health
B of A Securities maintains its buy rating on CVS Health with a $110 price target, a 7.98% upside from the current price.
Key Points
- B of A Securities reiterated its buy rating for CVS Health on June 23, 2026, with a price target of $110.
- B of A Securities's $110 price target implies 7.98% upside from CVS Health Corporation's ($CVS) current $101.87 share price.
- CVS Health shares traded at approximately $98.32 on Tuesday, with a market cap of $129.25 billion and a forward P/E of 12.08.
- Major shareholders like BlackRock and Vanguard have adjusted their positions in CVS, reflecting varying institutional strategies.
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B of A Securities has reiterated its buy rating for CVS Health Corporation (NYSE:CVS) with a price target of $110. Analyst Allen Lutz maintained the rating on June 23, 2026, as the stock traded near $98.32.
B of A Securities vs. the S&P 500
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Other Institutional Activity in CVS Health
Several major institutional investors have made recent moves in CVS Health. BlackRock, Inc. increased its holdings by 4,925,379 shares, bringing its total to 125,919,853 shares valued at approximately $9.04 billion. Vanguard Capital Management LLC opened a new position with 82,650,076 shares, worth about $5.94 billion. Capital World Investors also increased its stake by 9,585,731 shares, totaling 77,248,642 shares valued at $5.55 billion. Meanwhile, State Street Corp trimmed its holdings by 861,562 shares, and Dodge & Cox reduced its position by 10,729,872 shares.
CVS Health Corporation Stock Up 9.5%
Shares of CVS Health traded around $98.32 on Tuesday. The company boasts a market cap of $129.25 billion, with a P/E ratio of 44.43 and a forward P/E of 12.08. Its beta is relatively low at 0.623, indicating lower volatility compared to the market. The stock's 52-week range spans from $58.50 to $103.12, with a 50-day moving average of $88.74 and a 200-day moving average of $80.22.
$CVS price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
CVS Health reported revenue of approximately $405.62 billion, reflecting a growth rate of 6.1%. The company's net margin stands at 0.723%, with a return on equity of 3.75%. The next earnings report is expected on July 30, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
11 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 15.8%. Revenue beat estimates by 4.6%.
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Profit surprise
EBITDA beat by 15 percent. Operating income beat by 4 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
11 target raises.
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Earnings quality
Operating margin up 1.1 points. Positive free cash flow.
Earnings Call Summary
CVS delivered a strong first quarter with $100.4 billion in revenue, up 6 percent year over year, and earnings per share of $2.57, beating consensus by 36 cents. The Aetna health insurance business showed major improvement with operating income up 1 billion dollars year over year and a better medical benefit ratio. Pharmacy sales grew 3 percent at existing stores driven by strong prescription volume increases. Management is focused on affordability, reducing friction in the health system, and launching a new consumer app called Health100 powered by artificial intelligence.
Guidance CVS raised full year earnings guidance to $7.30 to $7.50 per share, up from $7.00 to $7.20. They expect at least $405 billion in revenue for the year. Operating cash flow guidance improved to at least $9.5 billion.
Good report. The company beat and showed some forward improvement, with a few meaningful caveats.
Dividend
CVS Health offers an annual dividend rate of $2.66, yielding 2.71%. The dividend payout ratio is 116.67%.
Insider Buying and Selling at CVS Health Corporation
Recent insider activity includes sales by several executives. On May 31, 2026, Amy Compton-Phillips, the EVP and Chief Medical Officer, sold 7,618 shares at $90.98. Similarly, Brian Newman, the EVP and CFO, sold 2,478 shares at the same price. Fernando Aguirre sold a total of 31,000 shares over two days in May, and Larry Robbins sold over 748,000 shares in late May, all at prices around $93.50.
Analysts Set New Price Targets
In addition to B of A Securities, several other firms have maintained their buy ratings on CVS Health. Mizuho set a target price of $115 on June 8, 2026, while Morgan Stanley maintained a target of $111 on June 4, 2026. Truist Securities and Barclays also reiterated their buy ratings with targets of $108 and $106, respectively. The consensus among 26 analysts is a strong buy, with an average target price of $105.
About CVS Health
CVS Health Corporation, headquartered in Woonsocket, Rhode Island, provides a range of health solutions across the United States. It operates through segments such as Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness. The company offers health insurance products, pharmacy benefit management solutions, and sells prescription and over-the-counter drugs. CVS Health employs around 219,000 people and is led by CEO Mr. J. David Joyner.
Bottom Line
B of A Securities' reiteration of its buy rating and $110 price target for CVS Health reflects continued confidence in the company's prospects. Investors will keep an eye on CVS Health's performance as the next earnings report approaches. These analyst ratings and institutional moves provide a snapshot of market sentiment toward CVS Health, though it's important to remember that such ratings are backward-looking and may not reflect current conditions.
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