CVS Health Corp

CVS: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$86.00	Nsmxg	Kfjxkbpg

CVS Earnings: Solid Results Overshadowed by Reduced 2023 Outlook on Quick Oak Street Close

Julie Utterback

May 3, 2023

Narrow-moat CVS Health delivered slightly-better-than-anticipated first-quarter results, but as we highlighted as likely in a late March note, the firm pushed down its guidance for 2023 earnings after closing the loss-generating Oak Street acquisition earlier than expected. Considering the better-than-expected first-quarter results, though, the firm's new 2023 outlook is slightly higher than what we started modeling in late March after the initial Oak Street announcement, and our $113 fair value estimate remains intact. Shares appear significantly undervalued to us.

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