CVS Faces Medicaid Network Loss And PBM Scrutiny As Valuation Looks Undemanding

CVS Health is facing new challenges, including its removal from the Horizon NJ Health Medicaid network due to a pricing dispute and increased scrutiny on Pharmacy Benefit Managers (PBMs) from the U.S. Department of Labor. These developments raise concerns about medication access and potential business impacts for CVS’s pharmacy and PBM operations. Despite these headwinds, CVS stock is currently trading around $76.33, with financial assessments suggesting it is undervalued, trading roughly 58% below its estimated fair value.

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