Analysts’ Take on CVS Health and Walgreens


Dec. 4 2020, Updated 10:52 a.m. ET

Analysts’ ratings for Walgreens

Walgreens Boots Alliance (WBA) and CVS Health (CVS) are both well-covered stocks. While Walgreens is tracked by 27 analysts, 25 analysts cover CVS.

Walgreens is rated a 2.3 with 52% “buy” and 48% “hold” recommendations. There aren’t any “sell” recommendations on the company. The ratings are done on a scale of one (strong buy) to five (sell).

Evercore ISI Group, Jefferies, and Wells Fargo are among the brokers that gave a “buy” rating on Walgreens. Barclays, Deutsche Bank, and Morgan Stanley are the brokers that gave a “hold” recommendation.

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Analysts’ ratings for CVS

In comparison, CVS has a slightly better rating of 2.0 with 70% “buy” and 30% “hold” recommendations.

Loop Capital and Wolfe Research are among the investment firms that gave a “hold” recommendation. Raymond James, Morgan Stanley, and Deutsche Bank gave a “buy” rating.

How have analysts’ views changed in the past year?

Walgreens’ rating has come down from a 2.0 in May last year to 2.3 currently. There were rating cuts from Leerink Swann (from “outperform” to “market perform”), Morgan Stanley (from “overweight” to “equal weight”), and Raymond James (from “outperform” to “market perform”).

CVS’s rating fell from 2.0 in May 2017 to 2.2 in October. The rating improved to 2.0 early this year. CVS was upgraded by Morgan Stanley (from “equal weight” to “overweight”) and Raymond James (from “outperform” to “strong buy”) early this year.

Investors looking for exposure to Walgreens and CVS could consider the Van Eck Retail ETF (RTH), which invests ~9% of its portfolio in the two companies.


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