CVS upgraded at UBS on valuation, growth prospects

[CVS Health Caremark Corporate Office in Irving, Texas, USA.]
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* UBS upgraded CVS Health (NYSE:CVS [https://seekingalpha.com/symbol/CVS]) to buy from hold saying that the company has a compelling valuation and good growth prospects.
* The investment bank raised its price target to $79 from $67 (~15% upside based on August 15 close).
* Analyst Kevin Caliendo said that CVS has executed well over the past two quarters and there are "early signs that the Healthcare Benefits (HCB) segment fixes are on track."
* He also praised the company's Medicare Advantage program.
* "The benefit cuts and assumptions CVS made around Medicare Advantage 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," Caliendo added.

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