"Our 24/7 Wall St. price target for CVS Health ( NYSE:CVS | CVS Price Prediction) is $125.45, pointing to meaningful upside from where shares trade today. The stock closed at $86.86 on May 6, after a 7.65% single-day pop on Q1 earnings. Our model implies 44.43% upside over the next 12 months, and we are issuing a buy rating with high confidence."
"The catalyst was a clean Q1 2026 earnings report on May 6. CVS posted adjusted EPS of $2.57 against a $2.21 consensus, the fourth straight beat. Revenue rose 6.2% to $100.4 billion. The headline was Aetna: Health Care Benefits adjusted operating income jumped 52.6% to $3.04 billion, with the medical benefit ratio improving to 84.6% from 87.3%. Management raised full-year adjusted EPS guidance to $7.30 to $7.50 and operating cash flow to at least $9.5 billion."
"The bull case is straightforward. If Aetna's MBR continues compressing and the individual exchange exit removes a money-losing drag, FY2026 EPS could land near the high end or above the $7.50 guide. Caremark is winning clients with high-90s retention, and the Health100 launch on Google Cloud opens a new tech-enabled engagement layer."
"Morningstar's Julie Utterback raised her fair value to $105 from $97 after the earnings report. The Street consensus sits at $96.65 with 24 buys, 3 holds, and zero sells. BofA raised the firm's price target on CVS Health to $100 from $95 and keeps a Buy rating on the shares after the company reported a Q1 beat with revenue, EBIT, and EPS above consensus expectations. Further, UBS raised the firm's price target to $100 from $97 and keeps a Buy rating on the shares."
CVS Health received a strong Q1 2026 earnings report on May 6, with adjusted EPS of $2.57 versus a $2.21 consensus and revenue up 6.2% to $100.4 billion. Aetna’s Health Care Benefits adjusted operating income increased 52.6% to $3.04 billion, while the medical benefit ratio improved to 84.6% from 87.3%. Full-year adjusted EPS guidance was raised to $7.30 to $7.50, and operating cash flow guidance was set at at least $9.5 billion. The outlook assumes continued medical benefit ratio compression and removal of a money-losing drag from the individual exchange exit. Caremark client retention remains in the high 90s, and Health100 on Google Cloud adds a technology-enabled engagement layer. A bull case scenario targets $141.86.
Read at 24/7 Wall St.
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