Why CVS Stock Rallied Tuesday Morning

CVS Health stock rallied 3.4-3.7% on Tuesday following bullish commentary from Jefferies analyst Brian Tanquilut, who affirmed a buy rating with a $120 price target (28% upside). The analyst highlighted strong management guidance suggesting 2027 EPS of at least $8.44, upcoming share buybacks, and Aetna's successful turnaround with over $2 billion in year-over-year operating income growth. CVS has beaten expectations for four consecutive quarters and raised full-year guidance to $8.00 adjusted EPS (19% growth).