Street View: CVS could meet 2025 growth target despite challenges

** Healthcare conglomerate CVS Health CVS on Wednesday sliced its annual adjusted profit forecast by $1.30 to at least $7.00 per share, citing higher medical costs for its Aetna health insurance unit

** CVS says it expects profit per share to grow by low double-digit percent in 2025

POISED FOR GROWTH IN 2025

** Brokerage Jefferies ("buy," PT: $72) sees CVS achieving its 2025 EPS growth target, even though the stock movement reflects "a much more subdued earnings power"

** Jefferies adds that improved U.S. government ratings for Aetna's plans should lead to add $700 mln in adj operating income next year and act as a "building block" for profit growth

** Evercore ISI ("outperform," PT: $65) says CVS's strong commercial insurance wins in public, labor and large national accounts will continue growing into 2025

** Evercore adds that its unit, through which it provides healthcare services in clinics and homes, is poised to improve next year and could see a "step up" in healthcare delivery profit

** Morningstar (PT: $93) says 2025 EPS growth target is above the company's long-term outlook of 6% growth in the intermediate-term, accelerating to 7.5% by 2028

** Barclays ("equal weight," PT: $63) says 2025 EPS target could "elongate" the path to achieve targeted margins of 4%-5% for its Medicare Advantage (MA) business

** Brokerage Stephens says easing competition from CVS in the MA market in 2025 and beyond could benefit rivals UnitedHealth UNH and Humana HUM