CVS Health Upgrade: Analyst Raises Price Target to $79 at UBS

UBS upgraded CVS Health to "buy" from "hold" due to compelling valuation and good growth prospects. The investment bank raised its price target to $79 from $67, indicating a ~15% upside based on the August 15 close. Analyst said CVS has a solid balance sheet and is poised to benefit from the ongoing shift towards value-based care.

UBS has upgraded CVS Health to a "buy" rating from "hold," citing compelling valuation and robust growth prospects. The investment bank raised its price target to $79 from $67, indicating a potential ~15% upside based on the August 15 close. The upgrade reflects UBS's confidence in CVS Health's solid balance sheet and its position to benefit from the ongoing shift towards value-based care [1].

In its latest earnings report, CVS Health posted quarterly earnings of $1.81 per share, surpassing analyst estimates by $0.35. Revenue reached $98.92 billion, up 8.4% year-over-year. The company also declared a quarterly dividend of $0.665 per share, with an annualized yield of 3.9% and a payout ratio of 74.30% [2].

Horizon Investments LLC, one of the institutional investors, increased its holdings in CVS Health by 43.1% during the first quarter, acquiring an additional 15,619 shares, bringing their total ownership to 51,846 shares valued at approximately $3.48 million [2]. This increase underscores investor confidence in CVS Health's financial performance and growth potential.

UBS's upgrade highlights the company's ability to navigate the evolving healthcare landscape, particularly in the area of value-based care. The shift towards value-based care models, which focus on patient outcomes and quality of care, aligns with CVS Health's strategic direction. For example, the value-based care arrangement between Aetna, a CVS Health company and health plan, and virtual eating disorder provider Equip has demonstrated significant success. Of the Aetna members treated by Equip since 2021, 86% have made progress in their eating disorder treatment, with an average reduction in symptoms of 70% [1].

Moreover, UBS's positive outlook on CVS Health's valuation is supported by the company's strong financial performance and the increasing demand for value-based care solutions. The investment bank's upgrade suggests that investors should consider CVS Health as a promising opportunity, given its robust balance sheet and growth prospects.

References:
[1] https://www.cvshealth.com/news/mental-health/advancing-value-based-behavioral-health-care-through-clinical-collaboration.html
[2] https://www.marketbeat.com/instant-alerts/filing-horizon-investments-llc-acquires-15619-shares-of-cvs-health-corporation-nysecvs-2025-08-16/