Bank Of America Raises CVS Health Price Target

On Monday, analysts at Bank of America raised the price target on shares of CVS Health Corp CVS from $94 to $104 and reiterated the Buy rating.

Robert Willoughby finds the company’s emphasis on its hybrid PBM/pharmacy model is driving better-than-average industry revenues, EPS and cash flow growth.

Willoughby is raising the 2015 adjusted estimate to account for better revenue and share base outlook, given CVS’ plans to repurchase roughly $6 billion of stock in 2015.

“CVS’ retail share with PBM accounts is now an eye-popping 40%, up from ~30% last year, with more room to run at the expense of its retail competitors. Its share of PBM specialty scripts, which are surging, is even higher (59%). Consequently, another strong PBM selling season with $3.2 billion in net new business will drive higher volume across the enterprise.”

Shares of CVS recently traded at $96.82, up 1.17 percent.