CVS Caremark’s Target, Estimates Boosted at Citigroup (CVS)

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Drug store operator CVS Caremark Corporation( CVS ) on Tuesday saw its price target and earnings estimates lifted by analysts at Citigroup.

The firm maintained its "Buy" rating on CVS and raised its price target to $42. That new target represents an expected 35% upside to the stock's Monday closing price of $31.05.

Citigroup also boosted its earnings estimates for the company through 2011, noting that CVS is finally beginning to realize the benefits from its blockbuster 2006 merger with pharmacy services provider Caremark Rx.

CVS Caremark shares were mostly flat in premarket trading Tuesday.

The Bottom Line
We recently removed shares of CVS back on Nov.5, when the stock was trading at $36.15. The company has a dividend yield of 1.13%, based on last night's closing stock price of $31.60. The stock has near-term technical support in the $27 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels. We would remain on the sidelines for now.

CVS Caremark Corporation( CVS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 The NASDAQ OMX Group, Inc.

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