CVS Health Corporation Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for CVS Health Corporation (CVS).
Give me a comprehensive price target analysis for CVS Health Corporation (CVS).
Horizontal price target lines drawn
- Low Target: $70.00 (color: green)
- Median Target: $81.50 (color: blue)
- High Target: $99.00 (color: orange)
Lines have been extended 30 days into the future from 2025-10-02 and plotted on CVS (CVS) with the specified colors. Details:
- Low target line at 70 extended to 2025-11-01
- Median target line at 81.5 extended to 2025-11-01
- High target line at 99 extended to 2025-11-01
Executive Summary
- CVS remains a mature healthcare services and pharmacy operator with a roughly 3.5% dividend yield and modest earnings growth upside reflected in forward multiples.
- The stock currently trades at a forward P/E of about 11.9x and a price-to-book of ~1.26x, suggesting limited downside risk relative to earnings quality, but with upside potential contingent on margin expansion, debt deleveraging, and improved earnings revisions.
- Analyst targets imply a moderate upside from current levels, with high-end bull cases approaching the $99 target.
Fundamental Analysis Key metrics snapshot
| Metric | Value |
|---|---|
| Current price | $76.87 |
| Market cap | $97.50B |
| Enterprise value | $166.22B |
| Trailing P/E | 21.12x |
| Forward P/E | 11.86x |
| PEG | N/A |
| Price to book | 1.26x |
| ROE | 5.88% |
| ROA | 2.29% |
| Profit margin | 1.18% |
| Gross margin | 13.30% |
| Operating margin | 2.80% |
| Debt to equity | 106.7% |
| Total cash | $14.17B |
| Total debt | $82.72B |
| Dividend yield | 3.51% |
| 5-year avg dividend yield | 3.16% |
| Beta | 0.62 |
- The forward earnings multiple (11.9x) vs. trailing earnings (21x) reflects that CVS’ forward earnings are expected to improve relative to today due to cost controls, margin normalization, or earnings mix shifts.
- Leverage (debt-to-equity around 1.07x) remains high; cash balances cover some debt, but deleveraging would be a meaningful upside driver.
- Yield support (~3.5%) provides downside protection in a volatile market, but sustainability will depend on cash flow generation.
Earnings Analysis Recent earnings snapshot (selected metrics)
| Quarter | Total Revenue (USD B) | EBITDA (USD B) | EBIT (USD B) | Net Income (USD B) | Diluted EPS |
|---|---|---|---|---|---|
| 2025-06-30 | 98.92 | 3.58 | 2.41 | 1.02 | 0.80 |
| 2025-03-31 | 94.59 | 4.56 | 3.40 | 1.78 | 1.41 |
| 2024-12-31 | 97.71 | 3.65 | 2.88 | 1.64 | 1.30 |
| 2024-09-30 | 95.43 | 2.02 | 0.86 | 0.09 | 0.07 |
| 2024-06-30 | 91.23 | 4.22 | 3.07 | 1.77 | 1.41 |
- Notable point: The earnings mix shows volatility around quarterly reporting due to unusual items and tax effects. The June 30, 2025 quarter carried a relatively smaller net income and EPS, while March 31, 2025 showed a stronger quarterly print driven by one-time or composition effects.
- Revenue trended in the mid-to-high $90s billions in recent quarters, with EBITDA and EBIT oscillating due to mix changes and cost structure adjustments.
EPS Trend (quarterly and year-over-year context)
| Period | Current | 7 days ago | 30 days ago | 60 days ago | 90 days ago |
|---|---|---|---|---|---|
| 0q | 1.3641 | 1.3615 | 1.3905 | 1.4358 | 1.4424 |
| +1q | 0.9418 | 0.9370 | 0.9364 | 0.9779 | 0.9925 |
| 0y | 6.3650 | 6.3597 | 6.3023 | 6.1239 | 6.1336 |
| +1y | 7.1565 | 7.1443 | 7.1450 | 7.0464 | 7.0346 |
EPS Revisions (count of revisions)
| Period | Up Last 7d | Up Last 30d | Down Last 30d | Down Last 7d |
|---|---|---|---|---|
| 0q | 0 | 0 | 4 | 0 |
| +1q | 0 | 3 | 2 | 0 |
| 0y | 0 | 6 | 0 | 0 |
| +1y | 2 | 5 | 1 | 0 |
- The revision data show more downgrades on a near-term basis (0q), but longer-horizon revisions (+1q, +1y) show some upgrades as earnings visibility improves. This pattern supports a cautious tilt on near-term upside but potential for improvement as the year progresses.
Technical Analysis Current technical backdrop
| Indicator | Latest value (approx) | Interpretation |
|---|---|---|
| 50-day MA (latest) | $69.8 | Price is well above the 50-day MA, bullish intermediate trend. The MA has been rising but remained below current price, suggesting a positive but contained uptrend. |
| RSI (14) | ~61.2 | Neutral-to-bully momentum; no overbought signal yet. |
| MACD (12,26,9) | MACD ~1.6; Signal ~1.7 | Slightly positive momentum but near a potential cross; near-term bullish bias if MACDLINE stays above zero. |
| Price relative to MA | 76.9 vs 69.8 | Price sits comfortably above the 50-day MA, supports upside risk capacity. |
- The stock has shown constructive momentum with price above the 50-day moving average, and RSI in the 60s indicates room for modest upside before overbought risk emerges.
- The MACD reading is positive but modest, suggesting continued but gradual upside momentum.
Analyst Consensus & Price Targets Analyst coverage and targets
| metric | value |
|---|---|
| Current price | $76.87 |
| Target low | $70.00 |
| Target mean | $82.50 |
| Target median | $81.50 |
| Target high | $99.00 |
| Current analyst opinions | 24 analysts |
- The consensus implies a potential upside from current levels, with a median target near $81.50 and a mean target of $82.50. The high target of $99 suggests a more bullish case contingent on earnings expansion and multiple expansion.
- With about 24 analysts covering CVS, there is a reasonably broad view for near-term earnings trajectory and margin improvement.
Price Target Analysis (Short, Mid, Long-Term) Based on the provided targets and CVS’s price action, here is a structured view:
-
Short-Term (3 months): Target around the median at $81.50
- Justification: Near-term earnings visibility improves with continuing cash flow generation, modest margin normalization, and a favorable forward multiple (~11.9x). The price sits above the 50-day MA, supporting a continuation of the up move toward the median target. Near-term EPS revisions show some downgrades in the very near term, but longer-horizon revisions show positive movement, consistent with a cautious upside bias.
- Key drivers: Improved pharmacy services profitability, cost controls, favorable payer mix, potential debt deleveraging, dividend support.
-
Mid-Term (12 months): Target around the mean at $82.50
- Justification: A year-out view assuming improved operating leverage and continued growth in CVS’s core segments (pharmacy services, retail, and healthcare services). The forward P/E multiple (~11.9x) could expand modestly if margins stabilize and cash flow strength improves. The target aligns with consensus and provides a practical base-case upside from current price.
- Key drivers: Margin expansion, debt reduction, stable revenue growth, sustained dividend yield, regulatory tailwinds in pharmacy benefit management.
-
Long-Term (3+ years): Bull-case target up toward $99
- Justification: If CVS executes on margin stabilization, deleveraging, and expanding earnings power, a higher multiple could be supported by stronger profitability and a resilient healthcare services growth trajectory. A long-term target of $99 reflects a potential combination of earnings growth and multiple expansion under favorable macro conditions and operating efficiencies.
- Key drivers: Structural improvements in cost of goods sold and operating expenses, continued growth in prescription benefits management, potential synergies from healthcare services expansion, and a disciplined capital allocation plan.
Key Risks & Opportunities
- Risks:
- High leverage (debt-to-equity ~107%) constrains balance sheet flexibility and increases sensitivity to interest rate moves.
- Regulatory and competitive pressures in healthcare and pharmacy benefit management could compress margins.
- Macro demand volatility affecting discretionary and non-discretionary healthcare spend.
- Opportunities:
- Margin normalization and operating leverage improvements could lift EBITDA/EBIT margins.
- Continued dividend growth support from cash flow, potentially attracting income-focused investors.
- Expansion in CVS’s healthcare services and pharmacy benefit management footprint could drive revenue synergy.
Investment Recommendation
- Recommendation: Hold to Moderate Buy (with a bias toward upside if margins stabilize and leverage compresses)
- Time horizon: 12–24 months
- Expected return potential: Approximately 6–25% depending on which price target scenario unfolds (central case around mid-to-high single digits to low-teens returns if targets are achieved; higher returns possible in bull-case scenarios approaching $99).
Important notes about data sources and interpretation
- Earnings summary: The quarter-by-quarter data shows volatility in EBITDA/Net Income and EPS driven by unusual items and tax effects. The “Normalized EBITDA” series illustrates a normalization view that can differ from reported EBITDA in a given quarter.
- EPS trends: The provided EPS trend data indicate positive short-term EPS momentum (0q and +1q lines) but much higher trailing-year EPS values (0y and +1y), suggesting a potential mix of quarterly volatility and annualized effects that require careful interpretation.
- EPS revisions: Near-term revisions show some downgrades (0q), with more upgrades observed over longer horizons (+1q, +1y). This mixed signal suggests that analysts are watching for sequential improvements in profitability and cash generation.
Notes on the drawn lines
- Low Target line at 70.00 (green)
- Median Target line at 81.50 (blue)
- High Target line at 99.00 (orange)
- Lines extended to 2025-11-01 (30 days into the future from 2025-10-02) to provide a forward visual reference for support and resistance around the target levels.
Summary tables (selected data)
Analyst Targets and Valuation
| Metric | CVS |
|---|---|
| Current price | $76.87 |
| Target low | $70.00 |
| Target mean | $82.50 |
| Target median | $81.50 |
| Target high | $99.00 |
| Analysts | 24 |
Fundamental snapshot
| Metric | Value |
|---|---|
| Market cap | $97.50B |
| Enterprise value | $166.22B |
| Trailing P/E | 21.12x |
| Forward P/E | 11.86x |
| Price to book | 1.26x |
| ROE | 5.88% |
| ROA | 2.29% |
| Gross margin | 13.30% |
| Operating margin | 2.80% |
| Debt to equity | 106.7% |
| Total cash | $14.17B |
| Total debt | $82.72B |
| Dividend yield | 3.51% |
| 5-year avg dividend yield | 3.16% |
| Beta | 0.62 |
Technical snapshot
| Indicator | Value (latest) | Interpretation |
|---|---|---|
| 50-day MA | $69.80 | Price above MA; bullish intermediate trend |
| RSI (14) | 61.2 | Neutral to bullish momentum |
| MACD | 1.6 (vs 1.7 signal) | Positive but modest momentum; potential cross if momentum persists |
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