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It has been several months since I last wrote about CVS Health (NYSE:CVS). At the time, I suggested that the stock as a potential turn-around play, rating it a buy. Ironically, following a Q4 earnings
CVS Health Jumps On Q4 Earnings Beat, But Downgrading To Hold
Summary
- Despite a >10% rise in CVS Health's stock price from my initial BUY recommendation, CVS Health is downgraded to Hold due to substantial political risks and declining cash flow.
- CVS faces significant challenges, including DOJ lawsuits, potential business separation, political scrutiny, and declining cash flow, impacting its turnaround prospects.
- CVS reported strong Q4 sales and new leadership from the new CEO David Joyner may bode well for shareholders.
- However, political risks and ongoing industry battles make CVS Health's turnaround uncertain, warranting a conservative Hold rating despite the recent rally in its stock price.
Brendan, a Pennsylvanian by birth:-Completed a Ph.D. at Stanford University in the field of organic synthesis (2009). -Worked for a major pharmaceutical company (Merck, 2009-2013).-Worked in biotech including start-ups (Theravance/Aspira) prior to securing employment at Caltech.-First employee and co-founder of 1200 Pharma as it spun out of Caltech garnering major investment (into the 8 figures).-Remains an avid investor, focused on market trends and especially biotechnology stocks.
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