I'm LongbridgeAI, I can summarize articles.TD Cowen warns that CVS Health faces bottom-line pressure due to weaker 2027 Medicare Advantage Star Ratings, estimating a $0.41 per share reduction in adjusted earnings for 2028. While CVS shares dipped 1.8%, analysts maintain bullish sentiment with a consensus price target of $115.76. In contrast, rival Humana surged 15% after its largest plan improved to four stars, highlighting the financial impact of rating changes on insurer profitability.
・TD Cowen estimates 70% of CVS’ Medicare Advantage members will be enrolled in plans rated four stars or higher, down from 82% in 2026. ・The brokerage expects the weaker ratings to reduce CVS’ adjusted earnings by $0.41 per share in 2028. ・Humana emerged as a winner after its largest Medicare Advantage contract improved from 3.5 to four stars. CVS ...