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Macquarie analysts Bob Summers and Max Rakhlenko are expecting CVS Health Corp
For the first quarter, the analysts are modeling earnings of $1.16 per share, in line with the Street’s consensus estimates, and 2.4 percent same-store sales growth, comprised of 3 percent growth in pharmacy sales and 1percent front-end growth. On the other hand, they believe that not only the weak flu season will impact negatively on Rx same-store sales, moderating implied drug pricing is also likely to take a toll on results.
Overall, the firm remains bullish heading into the earnings call due to:
- 1) An realistic and reachable EPS target
- 2) Sustained integration of recently acquired businesses
- 3) “Further opportunities for accretive cross-vertical consolidation”
- 4) A business model that is generally resistant to recession, and has no FX exposure.
Macquarie experts reiterated an Outperform rating and $115 price target on shares, “and would consider any price weakness associated with a weak transitory flu season weighing on retail and pharmacy comps as buying opportunities.”
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
|Mar 2016||Credit Suisse||Assumes||Outperform|
|Feb 2016||Atlantic Equities||Initiates Coverage on||Overweight|
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