Deutsche Banks said CVS is poised for a comeback after a tough 2024. The bank upgraded the pharmacy stock to buy from hold and reiterated a $66 per share price target. Deutsche Bank’s forecast implies about 12% upside moving forward from Monday’s close. Analyst George Hill said that CVS’ earnings and multiple are likely near trough levels and highlighted the company’s efforts to foster growth — including recent leadership changes. CVS YTD mountain CVS stock. “Perhaps most importantly, we have done a detailed subsegment analysis of the company’s MCO [managed care organizations] segment and believe the earnings recovery is both achievable and will outpace Street expectations,” Hill said. The company is coming off of mixed third-quarter results where CVS did not provide forward guidance. November’s results were the first earnings report for newly minted CEO David Joyner — who replaced Karen Lynch in October. “In addition to the MCO recovery, key pillars of our investment thesis and ratings change rest on the recent leadership change, continued strength in [pharmacy benefit managers] services, a measured decline in pharmacy and a compelling risk/reward thesis,” the analyst added. CVS stock has pulled back more than 25% in 2024.
