CVS Health Stock In Focus After DOJ Scrutiny, Analyst Revision: Retail’s Cautiously Optimistic

Shares of retail chain CVS Health Corp have lost nearly 2.5% in value in the past week amid mounting regulatory scrutiny on the company, but retail sentiment remained strong.

On Monday, analyst firm Mizuho lowered the price target on CVS to $58 from $66 with an ‘Outperform’ rating, The Fly.com reported, noting the revision was part of the firm’s 2025 outlook note for managed care, acute care, behavioral health, clinical labs, and other health facilities. 

According to the firm, its two main themes for health care sub-sectors  are whether the "demand environment" is durable and the possible risk/benefits of the new administration in Washington, according to the report.

The revision comes after last week's lawsuit by the US Department of Justice, which accused CVS of filling dangerous quantities of opioid prescriptions that contributed to a nationwide epidemic of opioid addiction and overdose, according to media reports. A federal court in Providence, Rhode Island, reportedly alleged that, from October 2013 to last week, the chain was in violation of the federal Controlled Substances Act.

Retail sentiment on the stock, despite the headwinds, turned ‘bullish’ from ‘neutral’ from a week ago. While message volumes fell to the ‘normal’ zone from 'high'.

CVS sentiment meter and message volumes on Dec 24

For the next quarter, Wall Street expects CVS to post earnings per share of $1.00 on estimated revenues of $96.97 billion.

CVS Health stock is 45% year-to-date.

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