Bernstein Upgrades CVS Health Price Target to $91 Amid Strategic Shifts

Bernstein has revised its price target for CVS Health (CVS) upward to $91, reflecting improved visibility into the company's long-term profitability and operational execution. The firm reaffirmed its 'Market Perform' rating, suggesting the stock is expected to track the broader market’s performance rather than outperform. This adjustment follows a reassessment of CVS’s recent financial trajectory, including stronger-than-expected pharmacy margins and continued growth in its health services segment. The new price target implies a potential upside of approximately 15% from CVS's closing price on January 11, 2026, which stood at $79.10. This upward revision is grounded in Bernstein’s analysis of CVS's expanding footprint in value-based care, improved pharmacy benefit management (PBM) performance, and the ongoing integration of Aetna into its business model. These developments are contributing to enhanced cost discipline and revenue diversification. The firm also noted that CVS’s patient engagement initiatives and digital health tools are gaining traction, with a reported 22% year-over-year increase in telehealth utilization during Q4 2025. This reflects stronger adoption among members, particularly in rural and underserved markets, supporting the company's strategic pivot toward population health management. Investors and analysts are monitoring CVS’s ability to sustain margin expansion amid pricing pressures in the PBM space and increasing regulatory scrutiny. The stock is likely to remain sensitive to shifts in Medicare reimbursement policies and pharmacy pricing transparency mandates. However, Bernstein’s revised target suggests confidence in CVS’s resilience and strategic agility in navigating these challenges.