Analysts at Raymond James lowered their price target on shares of CVS Health Corp. to $75 from $90 on Thursday, citing “the collapse in sentiment for the payor-PBM complex.” They maintained their strong buy rating on the stock, saying they “believe the discount is unwarranted,” but acknowledging “significant overhangs on the political/headline front that are unlikely to abate in the immediate term.”
CVS shares have fallen 20% so far this year, and peers Walgreens Boots Alliance Inc. and Rite Aid Corp. have declined by 19% and 32%, respectively. A recent rout in health stocks comes amid calls for drug price transparency and U.S. Sen. Bernie Sanders’ unveiling of a new “Medicare for All” plan. The SPDR Health Care Select Sector exchange-traded fund has dipped 0.8% in the year to date, severely lagging the S&P 500 , which has gained 15.7%, and the Dow Jones Industrial Average , which has gained 13.4%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.