Goldman Sachs Downgrades CVS (CVS)

Goldman Sachs reported on Tuesday that it has downgraded drugstore chain, CVS Caremark Corporation (CVS).

The firm has lowered its rating of CVS from “Buy” to “Neutral,” and has reiterated a $57 price target. This price target suggests a 7% increase from the stock’s current price of $52.63.

An analyst from the firm commented, “CVS has a solid foundation, and bright intermediate-term prospects, notably from healthcare reform, which should drive accelerating script growth in 2014 and beyond. That said, for the first time since we launched, incremental near-term catalysts are lacking, earnings growth is slated to decelerate, and we expect EBIT growth to moderate as discrete earnings drivers abate. … Our $57, 12-month price target is based on risk/reward (relative P/E). Upside risks include WAG execution, generic benefits, and healthcare reform. Downside risks include front-end sales and reimbursement pressures.”

CVS shares were down 48 cents, or -0.91% during premarket trading Tuesday. The stock has increased 15% in the past year.

The Bottom Line
Shares of CVS Caremark Corporation (CVS) have a 1.71% yield, based on Monday’s closing price of $52.63.

CVS Caremark Corporation (CVS) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here