CVS Health Positioned For Medicare Margin Expansion And Market Share Gains, Says Barclays Analyst

Barclays upgraded CVS Health Inc (NYSE:CVS) on higher Pharmacy & Consumer Wellness (PCW) estimates as headwinds are offset by share gains, with further upside potential from CostVantage.

Despite macroeconomic pressures impacting the retail pharmacy sector, the analyst writes that CVS has shown resilience thanks to its diversified business model.

Also Read: CVS, UnitedHealth Request FTC Chair Recusal Amid Ongoing Pharmacy Benefit Managers Lawsuit.

This has allowed the company to mitigate some of these challenges and capitalize on market share gains from less financially stable competitors.

For 2025, Barclays estimates market forecasts include expectations of 110 basis points in Medicare margin expansion, which is on the lower end of CVS’s target range of 100-200 bps.

Barclays has upgraded ...