CVS Health Corp (NYSE:CVS) copped a downgrade from buy to neutral from UBS today after the US pharmacy chain downwardly revised its full-year profit 2024 guidance amid rising medical costs in its Medicare insurance business.
In a full-year profit forecast published on Wednesday, the chain said it expects to report adjusted earnings per share (EPS) of around $7 compared to prior guidance of at least $8.30.
CVS’s first-quarter EPS came to $1.31, clearly missing the $1.69 anticipated, mainly due to a sales decline in the Health Services segment.
Shares flopped nearly 20% on Wednesday following the poor results and dove another 3.5% today.
UBS downgraded its 12-month price target from $80 to $60. The stock was swapping for $54.30 at the time of writing.