Analyst Note
| Julie Utterback |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.