Jefferies Predicts 29% Upside for CVS Health Stock

Jefferies expects growth in CVS Health's shares and names the company as one of the standout picks in the healthcare sector. It set a price target of $120 for CVS stock, implying an increase of roughly 29%.

Jefferies' positive assessment is largely linked to Aetna's improved results. CVS's insurance business generated approximately $2.4 billion in adjusted operating profit in the second quarter. Since the start of the year, Aetna's operating profit has grown by more than $2 billion compared to the same period last year.

The company's pharmacy business is also noteworthy. In the second quarter, the number of prescriptions filled at CVS pharmacies rose 7% compared to the same period last year.

CVS's second-quarter earnings exceeded analysts' expectations, after which the company also raised its 2026 forecast. In the first six months of the year, CVS generated approximately $10.6 billion from operating activities. By year-end, the company expects this figure to exceed $11.5 billion.

Jefferies expects CVS to resume its share buybacks at the end of 2026 or the beginning of 2027. The bank believes this will be another positive factor for the company's stock.

Source: Investing.com