Drug store chain operator CVS Caremark Corporation (CVS) on Thursday caught some bullish commentary from analysts at Jefferies & Co.
The firm maintained its “Buy” rating on CVS and lifted its price target from $54 to $58. That new target suggests a 19% upside to the stock’s Wednesday closing price of $48.75. Jefferies also boosted its earnings estimates for the company through 2014.
The analyst commented, “Post the company’s Analyst Day we have raised our forecast for FY13 and FY14 to reflect higher cash flow expectations, increased share repurchases and improved profitability. While we have tempered revenue growth for FY13, our FY14 forecast reflects stronger revenue growth driven by the company’s Mail Choice program and the potential for Caremark to see outsized growth in covered lives.”
CVS Caremark shares were mostly flat in premarket trading Thursday. The stock has risen more than 19% since the beginning of 2012.
The Bottom Line
Shares of CVS Caremark (CVS) will now have a 1.85% dividend yield, based on last night’s closing stock price of $48.75. The stock has technical support in the $43-$44 price area. The shares are trading near all-time highs.
CVS Caremark Corporation (CVS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.