Buzz-Street View: CVS seen outrunning 340B drag as Caremark, health services deliver

J.P. Morgan ("overweight") says strong performance in CVS's Health Services segment should help offset the expected headwind in 2026, supporting its reaffirmed guidance, and indicating the company has opportunities to drive growth next year.

Leerink Partners ("outperform," PT: $119) says rising margins in CVS's healthcare benefits business, steady growth in its pharmacy and consumer wellness unit, and strong contributions from specialty services should help offset known headwinds and support the company's long-term growth trajectory.

Jefferies ("buy," PT: $120) believes CVS's Q2 results underscored lasting operational improvements that could support earnings growth through the second half of 2026 and into 2027, potentially leading to further upside in profit expectations.

CVS Health reported second-quarter results that topped analysts' expectations on Wednesday, but some investors were disappointed by the company's revised 2026 forecast and its initial profit outlook for 2027.

Median price target of 29 brokerages covering the stock is $113, according to LSEG-compiled data.

UBS ("buy," PT: $126) says pressure from the 340B drug pricing program is expected to persist through FY26, with continued outperformance at Caremark helping offset the impact, while both trends are likely to continue into FY27 and remain a headwind to results.