CVS Health (CVS) to Acquire TGT Pharmacies for $1.9B; Cowen Reiterates Outperform

Cowen maintains an Outperform rating and $116.00 price target on CVS Health (NYSE: CVS) following CVS's announcement to acquire TGT pharmacies. CVS will acquire more than 1,660 pharmacies across 47 states, for $1.9B.

Analyst Charles Rhyee commented, "We are positive on CVS's agreement to acquire, rebrand and operate TGT pharmacies and clinics as it allows CVS to expand at 1/5 the cost of building the equivalent number of CVS stores. Also, while the deal is expected to be dilutive in the S-T, we think mgmt's accretion ests may prove conservative as we see upside from increased productivity on a per store basis on top of procurement synergies."

For an analyst ratings summary and ratings history on CVS Health click here. For more ratings news on CVS Health click here.

Shares of CVS Health closed at $102.22 yesterday.

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