CVS Health Corp Gets An Upgrade By SunTrust Analysts

The pharmacy company has been upgraded by the analysts at SunTrust following some important acquisitions it has gone through recently

In a recent analysis report made by CVS Health Corp, it was seen that the health company received an upgrade from analysts at SunTrust equity firm which was supported by a number of positive elements that elevated the position of the stock much higher than it already was. The report which was published by the equity analysts on Monday showed that the medicine making giant has managed to receive a positive rating along with a very bullish ‘buy’ rating. Furthermore, the target that has been set on the share price has been recorded at $125.

Recently, CVS business informed the industry that it will be taking over a new project called Omnicarem which is yet another pharmaceutical company working towards the provision of medicine-related services. Following this massive transaction, the pharmacy giant is now being looked at by the analysts in a much positive manner given how it is in a much better position to expand its business through the startup’s already established network and grow in places where it was previously not present physically. According to the expectations of the equity firm, the health company is to report EPS for the full year of 2015 to come around $5.96 which will record an eminent increase of 14.4% as compared to the growth recorded in the previous year. As for the predictions made for 2016, the EPS is to come around $5.98 which means that the analysts are looking towards a better growth rate in the coming year.

The estimations made for 2017 have turned out to be the highest expected figures by the equity firm, as the EPS to be reported by CVS in that year is to come out to be $6.82 which means that a 14% increment will be announced by the giant. On the other hand, another reason which has been given by the financial firm for the upraise suggested for the pharmacy company is due to the expansion the giant has gone through very tactfully, which has helped the analysts to think very positively for the future of the company.

Apart from all those factors, the analysts have also noticed a trend of fast cash flow within the CVS stock which just boosts up the investor sentiments and is bound to bring the stock up on the index in the near future. The Omnicare company which the giant has recently obtained is also going to bring it a huge amount of profit according to the analysts’ opinion.