Investors should pounce on CVS’ current attractive valuation, according to Evercore ISI. The firm upgraded the health and pharmacy stock to outperform from in-line in a Tuesday note, accompanied by an $83 per share price target up from $81. Evercore’s forecast implies more than 17% upside from Monday’s $70.70 close. CVS stock has slipped more than 24% from the start of the year. CVS YTD mountain CVS stock. Analyst Elizabeth Anderson highlighted the company’s work to improve operational issues, and said CVS could be on the verge of regaining a four-star rating for its Medicare advantage plan from the Centers for Medicare and Medicaid Services. “CVS, like many [managed care organizations], is a complex organization, and we see a number of factors swinging in a positive direction, pointing to both a higher degree of confidence in [management’s] outlook as well as supportive of higher valuation,” Anderson said. Anderson noted that the company’s forthcoming investor day in early December also underpinned the upgrade, due to potentially higher 2025 earnings per share estimates as well as an update on the company’s long-term company algorithm. — CNBC’s Michael Bloom contributed to this report.
