Argus Trims CVS Health (CVS) PT to $90 Amid Medicare Advantage Rate Uncertainty

4 days ago 5

Maham Fatima

Sat, January 31, 2026 astatine 6:47 AM CST 2 min read

CVS Health Corporation (NYSE:CVS) is 1 of the most undervalued ample headdress stocks to put successful now. On January 28, Argus reduced its terms people for CVS Health to $90 from $91 portion maintaining a Buy rating. Despite a astir 15% banal diminution pursuing the Centers for Medicare and Medicaid Services’ connection for a level 2027 Medicare Advantage reimbursement rate, the steadfast anticipates an upward revision earlier the last complaint is acceptable successful April 2026. Argus suggested that adjacent if the last summation falls abbreviated of the erstwhile year’s 5.1%, CVS Health’s diversified concern exemplary should assistance mitigate the interaction much efficaciously than its pure-play wellness security competitors.

Furthermore, connected January 27, Bank of America besides lowered its terms people for CVS Health to $95 from $100 portion maintaining a Buy standing pursuing the merchandise of the 2027 Medicare Advantage Advance Notice. The steadfast noted that the projected nett all-in complaint of 2.54% importantly trails marketplace expectations of 4% to 6%, presenting a hurdle for the company’s borderline enlargement goals.

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The steadfast estimates that if these rates are finalized without adjustments to benefits, CVS Health Corporation (NYSE:CVS) could look an unmitigated headwind exceeding $1 cardinal successful Medicare Advantage gross and margin. However, BofA remains optimistic, pointing retired that last rates person historically improved upon the archetypal connection successful 64% of cases implicit the past 14 years.

CVS Health Corporation (NYSE:CVS) provides wellness solutions successful the US. It operates done Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments.

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