After a rough start to 2026, CVS Health (CVS -0.47%) shares have more than made up for their initial losses, surging in recent months on the heels of promising Medicare-related developments. Shares are already up over 25% year to date.

But even as shares keep climbing toward the top of sell-side analyst price targets, including the most recently raised price target, don't assume the runway is limited to this figure. Given CVS's strong comeback and potential rerating, it could remain one of the best-performing blue chip stocks this year.

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The latest price target raise for CVS Health

On June 8, Mizuho analyst Ann Hynes, while reiterating her bullish rating on CVS Health, raised her price target by 4.5%, from $110 to $115 per share. With shares trading around $97 at the time, this represented about 18.5% upside, but CVS Health's subsequent rally has narrowed that to about 13%.

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NYSE: CVS

CVS Health

Premium Feature

Moneyball Superscore

65/100

Today's Change

(-0.47%) $-0.46

Current Price

$96.74

Key Data Points

Market Cap

$124BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$96.28 - $97.69

52wk Range

$69.51 - $110.68

Volume

4.5M

Avg Vol

7.9M

Gross Margin

14.16%

Dividend Yield

2.75%

Following the stock's latest rally, investor sentiment has shifted strongly. Investors are likely no longer anticipating just "better than expected" results. There may now be an increasing pool of investors who believe that the company can continue to beat expectations. I believe this view is more than reasonable, with the potential for shares to reach levels above Mizuho's aforementioned target.

Loftier price levels within reach

Currently, CVS Health trades for just under 13.8 times forward earnings. If the stock were to rise to $115 per share, based on forecasts calling for 2026 earnings of $7.43 per share, CVS Health would be trading at a forward multiple of around 15.5.

The market now fully understands that CVS is a diversified healthcare services company today, similar to UnitedHealth Group. With UnitedHealth now rerated to a forward valuation in the low 20s, such a valuation may be reasonable for CVS as well, especially as forecasts call for further double-digit earnings growth in 2027. If this stock were to rise to a forward multiple in the high teens, or even up to 20 times forward earnings, it could hit prices near $150 per share.