Bank of America Merrill Lynch Reiterates “Buy” Rating for CVS Caremark Corporation (CVS)

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Analysts at Bank of America Merrill Lynch maintained a "Buy" rating for pharmacy chain CVS Caremark Corporation ( CVS ) in a report on Friday.

The analysts also reaffirmed a $49 price target for CVS, a +4.6% upside from Friday's closing price of $46.84.

Bank of America Merrill Lynch noted, "According to media reports, CVS will buy an 80% stake in Brazilian retail pharmacy chain Onofre for $313 million, plus assumed debt. The deal adds 44 stores (the eighth-largest chain in Brazil) in a high-growth region with rapidly expanding health care coverage. However, we maintain our 2013 EPS estimate ($3.57) at this time, on the relatively small investment size and what we expect are few operating synergies."

CVS shares were flat in premarket trading on Monday. The stock is up +17.1% year-to-date.

The Bottom Line
Shares of CVS Caremark ( CVS ) have a 1.39% dividend yield, based on Friday's closing stock price of $46.84. The stock has technical support in the $43-$44 price area. The shares are trading near all-time highs.

CVS Caremark Corporation ( CVS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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