Latest news with #KevinCaliendo
CNBC
a day ago
- Business
- CNBC
UBS upgrades CVS to buy rating, sees further recovery ahead
UBS sees a rosy outlook ahead for CVS . The bank upgraded the pharmacy stock to a buy rating from neutral, with analyst Kevin Caliendo lifting his price target by 18%, to $79 from $67. Shares of CVS Health have already surged 53% this year, through Friday's close. Caliendo's updated target implies an additional 15% upside ahead for the stock. CVS YTD mountain CVS YTD chart "Despite the YTD improvement in shares, we continue to see incremental upside, both from a long-term EPS perspective, with multiple years of [double-digit] earnings growth ahead given multiple pathways (but primarily hinging on the [healthcare benefits] recovery), and from a valuation multiple perspective," the analyst wrote. "While it remains early in the tenure of the new management team, stability in messaging and continued momentum in HCB earnings improvement (especially in light of peers' challenges) provides us with enough conviction today to make a call on the stock." Caliendo noted that his upgrade follows two strong consecutive quarters for CVS that indicate fixes to its healthcare benefits segment are on track. "Critically, the benefit cuts and assumptions CVS made around Medicare Advantage (MA) utilization this current plan year have proved to be on-point (meaningful prior year development provides comfort), giving us more conviction in the company's ability to forecast and manage trend," he added. "This is especially relevant as the company manages to [reprice] a disproportionate share of multi-year contracts in its group MA business (~50%) this year, which we believe are performing at a negative [mid-single digit] to [high-single digit] margin today." Caliendo sees CVS earning $7.20 per share by the end of fiscal year 2026, up from a prior estimate of $6.92 and a Wall Street consensus of $7.15. The healthcare benefit and pharmacy chain is likely to see 14% compound annual growth in its earnings per share through 2028 — whereas the Street only sees 12% — yet sells at a multiple of 9 times estimated 2026 results, versus a 10-year average of 10 times, the UBS analysts said.
Yahoo
28-05-2025
- Business
- Yahoo
UBS Sees Misunderstood Strength in Lifestance Health Group (LFST), Upgrades to Buy
UBS analyst Kevin Caliendo raised the rating of LifeStance Health Group, Inc. (NASDAQ:LFST) from Neutral to Buy on May 27, with an unchanged price target of $8.50. Caliendo ascribes the boost to investor de-risking and possible misunderstandings of recent corporate developments, which followed a period of downturn for the LFST stock. Despite a cautious forecast for the second quarter, LifeStance Health Group, Inc. (NASDAQ:LFST) reported a robust first quarter, exceeding projections, with adjusted EBITDA increasing 25% to $35 million and revenue rising 11% year-over-year to $333 million. In addition, Caliendo discussed the company's decision to switch from stock to cash incentives, which he views as an effective strategy that could yield LifeStance Health Group, Inc. (NASDAQ:LFST) over $40 million in net income yearly for the next four years. The analyst also brushed aside worries about the federal government's decision to suspend the mental health parity rule. He added that the company's reimbursement rates and rate-improvement track shouldn't be impacted by this suspension. LifeStance Health Group, Inc. (NASDAQ:LFST) is an American outpatient behavioral health service company that offers in-person and telehealth services. The company offers therapy, psychiatry, and TMS. While we acknowledge the potential of LFST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LFST and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
