Bernstein Sees CVS Well Positioned for Medicare Advantage Turnaround
Key takeaways
- On May 13, Bernstein raised its price recommendation on CVS Health Corporation (NYSE:CVS) to $106 from $94.
- During the company’s Q1 2026 earnings call, CEO, President, and Chairman J.
- Looking ahead, Joyner said CVS plans to launch Health100 later this year.
Bernstein Sees CVS Well Positioned for Medicare Advantage Turnaround Vardah Gill Fri, May 22, 2026 at 9:42 PM GMT+7 2 min read CVS CVS Health Corporation (NYSE:CVS) is included among the 10 High Quality Stocks to Buy According to Hedge Funds.
On May 13, Bernstein raised its price recommendation on CVS Health Corporation (NYSE:CVS) to $106 from $94. It reiterated an Outperform rating on the stock. The firm said it still sees CVS as well-positioned to benefit from the Medicare Advantage turnaround. It also pointed to the possibility of steadier earnings in the company’s pharmacy and pharmacy benefit manager businesses following PBM reform. Bernstein believes the PBM bill and the first Federal Trade Commission settlement earlier this year largely marked the completion of PBM reform. In its view, that served as a clearing event and reduced uncertainty around CVS’ turnaround efforts.
During the company’s Q1 2026 earnings call, CEO, President, and Chairman J. Joyner said CVS generated adjusted operating income of $5.2 billion and adjusted earnings per share of $2.57. He said the quarter’s results supported a stronger outlook for 2026, prompting the company to raise its full-year adjusted EPS guidance to between $7.30 and $7.50, up from the prior range of $7 to $7.20. Joyner also said the Final Rate Notice issued in April represented progress toward improving sustainability, though it still did not fully offset underlying medical cost pressures. He noted that industry cost trends remained above historical averages, and CVS would continue taking measures to improve Medicare Advantage margins.