Goldman Sachs Initiates Coverage on CVS Health

Goldman Sachs Initiates Coverage on CVS Health with 'Buy' Rating

Goldman Sachs has initiated coverage of CVS Health (NYSE:CVS) with a 'Buy' recommendation, setting a one-year price target of $91.00 per share. This significant development signals a potentially positive outlook for the integrated healthcare company within the financial community.

Detailed Analyst Coverage and Price Targets

On October 14, 2025, Goldman Sachs analyst Scott Fidel commenced coverage of CVS Health with a 'Buy' rating. The firm's price target of $91.00 per share reflects its assessment of the company's value proposition. This initiation contributes to a broader trend of analyst attention on CVS Health.

Several other financial institutions have recently adjusted their ratings and price targets for CVS Health:

• October 9, 2025: Mizuho maintained an 'Outperform' rating, raising its price target from $76.00 to $88.00.
• October 7, 2025: Wells Fargo maintained an 'Overweight' rating, increasing its price target from $84.00 to $103.00.
• September 5, 2025: Bernstein maintained a 'Market Perform' rating, raising its price target from $72.00 to $77.00.
• September 4, 2025: Barclays maintained an 'Overweight' rating, increasing its price target from $80.00 to $87.00.
• August 26, 2025: Cantor Fitzgerald reiterated an 'Overweight' rating with a stable price target of $78.00.

The consensus among 29 brokerage firms currently assigns CVS Health an average recommendation of 2.0, translating to an 'Outperform' status on a scale where 1 signifies 'Strong Buy' and 5 denotes 'Sell'. Across 24 analysts, the average one-year price target for CVS Health stands at $82.35, with estimates ranging from a low of $70.00 to a high of $103.00.

Comprehensive Business Model and Market Presence

CVS Health operates a diverse healthcare services model. Its foundational business includes over 9,000 retail pharmacy locations, primarily in the United States. The company also manages a significant pharmacy benefit management (PBM) segment through Caremark, processing approximately 2 billion adjusted claims annually.

Furthermore, CVS is a top-tier health insurer via Aetna, serving around 27 million medical members. Recent strategic acquisitions, such as Oak Street Health, have expanded its offerings into primary care services, broadening its integrated healthcare delivery platform and enhancing its market presence.

Financial Projections and Recent Performance

Despite the positive analyst sentiment, CVS Health faces some projected financial adjustments. The company's projected annual revenue is $341.529 billion, representing an anticipated decrease of 11.14%. Projected annual non-GAAP EPS (Earnings Per Share) is estimated at $10.15.

For the second quarter of 2025, CVS Health reported total revenues of $98.9 billion, an 8.4% increase year-over-year. GAAP diluted EPS for the quarter was $0.80, while Adjusted EPS reached $1.81. The company updated its full-year 2025 guidance, revising GAAP diluted EPS to a range of $3.84 to $3.94 (from $4.23 to $4.43) and raising Adjusted EPS guidance to $6.30 to $6.40 (from $6.00 to $6.20). Cash flow from operations guidance was also raised to at least $7.5 billion. These updates reflect varied performance across its segments, with growth in Health Care Benefits and Pharmacy & Consumer Wellness partially offset by a decrease in the Health Services segment.

Investor Sentiment and Institutional Activity

Market sentiment regarding CVS Health appears largely bullish. The Options Interest (OI) Put/Call Ratio for CVS stands at 0.78. A ratio below 1 typically indicates a bullish sentiment, as the number of open call options (bullish bets) exceeds put options (bearish bets).

Institutional ownership further supports this outlook, with total shares owned by institutions increasing by 1.31%. This accumulation suggests confidence from large investment funds in the company's prospects, despite the projected revenue adjustments.

Broader Implications and Future Outlook

The initiation of coverage by a prominent firm like Goldman Sachs, coupled with a string of positive ratings and price target increases from other financial institutions, typically reflects growing confidence in a company's market position and future growth potential. For CVS Health, this trend underscores the perceived strength of its diversified healthcare service offerings and its strategic acquisitions aimed at expanding its integrated care model.

Investors will likely monitor how these analyst ratings translate into stock performance. Key factors to watch include the execution of its primary care strategy following the Oak Street Health acquisition, the impact of the projected revenue decrease, and the company's ability to manage its varied business segments effectively in a dynamic healthcare landscape. Future earnings reports and further analyst revisions will provide additional insights into the company's trajectory and overall financial health.