4 big analyst picks: CVS picks up upgrade on 'attractive risk/reward,' per Wolfe

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Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since Friday: upgrades at CVS Health, Brown Forman, Geron, and a buy initiation for Block.

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Wolfe Research upped CVS Health (NYSE: NYSE:CVS) to Outperform from Peerperform with a price target of $80.00, prompting the shares to shoot higher after word of the upgrade hit the wires intraday Monday.

The firm believes potential adjustments to CVS's long-term earnings outlook, coupled with confidence in a 2025 recovery in its Star rating, could lead to substantial improvements in medical advantage profits.

Wolfe wrote, «we see potential for CVS to take steps to more reasonably / conservatively set expectations for LT earnings growth in 2025 and beyond in the high single digit range.» The analysts also said CVS's key PPO plan could gain a 4-Stars rating at the Centers for Medicare & Medicaid Service (CMS), which they note could yield significant financial benefits.

They added that, while these gains may not fully impact 2025 earnings per share — as new Aetna management has investment targets in that business to stimulate growth — they say that this sets the stage for CVS to meet or exceed earnings expectations, given more realistic targets at December Investor Day for 2025 and beyond.

Shares closed Monday's session higher by 4.4% to $68.75, and was recently up 0.6% in Tuesday's premarket.

Berenberg initiated coverage on Block (NYSE:SQ) with a Buy rating and a price target of $75.00 on Monday, as reported in real time on InvestingPro.

The analysts wrote in their note to clients:

Block’s improving outlook for profitability reflects significant operating