While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of CVS Caremark (NYSE:CVS) climbed 1% in early trading today after Jefferies Group initiated coverage on the drug retailer with a buy.

So what: Along with the bullish call, analyst Mark Wiltamuth planted a price target of $71 on the stock, representing about 25% worth of upside to yesterday's close. Shares have slumped in recent months on signs of slowing revenue growth, but Wiltamuth thinks the pullback provides investors with a solid bargain opportunity given the numerous tailwinds working in CVS' favor.

Now what: Jefferies believes CVS is in a particularly good spot to capitalize on long-term trends.

"We recommend CVS Caremark as a core holding as we view it as the drug retailer best positioned to benefit from the Affordable Care Act, the aging of baby boomers and double-digit growth in specialty pharmacy," Jefferies noted. "As the #1 US drugstore, #2 PBM, #2 in Medicare Part D insurance plans, and #2 in Specialty Pharmacy, the company's integrated PBM/retail model is best positioned to capture the coming shifts in the marketplace, in our view."

More importantly, with the stock off about 10% from its 52-week highs and trading at a reasonable forward P/E of 12, investors have some room to benefit from that prime position. 

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.