Bernstein Raises PT on CVS Health (CVS) to $91, Reiterates ‘Market Perform’ Rating

Core Viewpoint - CVS Health Corporation (NYSE:CVS) is identified as one of the most undervalued blue chip stocks currently available for investment [1] Group 1: Price Target and Market Position - Bernstein raised its price target on CVS from $87 to $91 while maintaining a 'Market Perform' rating, anticipating a broader inflection in the government-managed care organization (MCO) sector starting in 2026 [2] - The firm expects short-term earnings recovery for CVS, driven by Medicare Advantage (MA) and attractive valuations in Medicaid, despite an uneven recovery path [2] Group 2: Analyst Optimism and Regulatory Environment - Cantor Fitzgerald named CVS as a preferred play for MA exposure in 2026, citing a more favorable regulatory backdrop and increased earnings visibility due to upcoming sector catalysts [3] - Key upcoming events include CMS enrollment data in mid-February and the preliminary MA rate notice expected in late January or early February 2026 [3] Group 3: Competitive Landscape - Analysts from Wells Fargo projected declining post-pandemic tailwinds and subsidy risks, downgrading CVS's peers Humana and Universal Health Services, while identifying CVS and UnitedHealth as likely beneficiaries of the MA recovery [4] - CVS operates as a diversified healthcare solutions provider, encompassing insurance benefits, pharmacy benefit management, retail pharmacy, clinics, and consumer wellness, thereby integrating care delivery, services, and coverage at scale [5]