Who ever gave the thumbs down needs to learn how to read a balance sheet...lol
Older people on average take four to five prescription drugs and one over-the-counter drug each day, and America is an aging nation. The Affordable Care Act is also good news, as more insured people mean more people using a drug benefit.
CVS looks ready to make the most of all this
for continued growth over the next three to five years and beyond as the health-care marketplace continues to evolve,” according to JPMorgan’s Lisa Gill.
CVS’ purchases of Target’s retail pharmacies and Omnicare are evidence of this strategy, as these assets will allow it to expand its scope, while its increased heft will give it better leverage when negotiating with drug makers.
Omnicare is the nation’s largest pharmacy provider to long-term care, thus extending CVS’ reach into the specialty pharma market and growing nursing home business. CVS said that the Omnicare deal will be accretive to earnings when it closes before the end of the year, adding 20 cents to 2016 earnings per share. The Target deal, in which CVS will operate and rebrand in-store pharmacies, will be accretive in its second year and expand CVS’ geographic scale and footprint. At present, analysts expect EPS to climb more than 14% year-over-year this year, to $5.15, and 14.5% in 2016; revenue should increase by more than $10 billion, to $150.5 billion this year. Cowen’s Charles Rhyee calls CVS “one of the best large-cap health-care services growth stories, with a 16% EPS compound annual growth rate from 2015 to 2018.”
“CVS has a lot of good organic growth embedded in the enterprise as it exists today: It is strategically positioned having both pharmacy benefit management and retail,” says RBC Capital Markets’ Frank Morgan, who recently raised his target price to $132, or 22% above current levels. “Its model works very well, and the industry backdrop is favorable.”
I think people look at this and fear it's going the rout of American Apparel... I dont agree with that though because AA is a teen retailer
Yet at 18 times next year’s earnings and 0.8 times sales, CVS is cheaper than major rival Walgreens Boots Alliance (WBA).
CVS had its target price boosted by Argus from $114.00 to $118.00 on Aug 13th. They currently have a buy rating on the pharmacy operator’s stock.
RBC Capital restated their outperform rating on shares of CVS Health Corp . They currently have a $132.00 price target on the pharmacy operator’s stock, up from their previous price target of $117.00.
CVS‘s stock had its “hold” rating reissued by equities research analysts at Deutsche Bank in a research note . They currently have a $117.00 price target on the pharmacy operator’s stock, up from their previous price target of $108.00.
Longs and analysts have been right about the stock for five years
cmc587...do you remember when Walgreen's stock used to be $12 ahead of CVS and the WAGers were here 24/7 bashing CVS claiming victory? Who held the fort? where are they now???...LOL
"But clone remains irrational from Texas firing"
We finally agree on something.
Posted by Noah on Aug 17th, 2015
Christopher & Banks Co. had its target price cut by Piper Jaffray from $10.00 to $6.00 in a research note released on Friday. They currently have an overweight rating on the stock.
Cash vs debt vs competitors + inventory + brand name = Intrinsic Value which is way higher than the current share price. I see this as a private equity takeout target here...JMO
Yeah, I am sure a 50% drop today has their attention...lol