CVS Health (CVS) faces manageable 340B headwinds in 2026, with larger earnings risks emerging in 2027, BofA Securities said in a Tuesday note.

Analysts estimate total earnings per share risk of about $0.45, with $0.06 of headwinds impacting the business in 2026 and larger risks in 2027.

BofA said headwinds include a growing list of drugmakers requiring claim-level data to approve 340B discounts, a proposed rule that would reduce 340B reimbursement, and lawsuits from a few covered entities alleging CVS is retaining excess 340B spreads.

The proposed reimbursement change could result in a $600 million to $700 million EBIT headwind in 2027, according to the note.

Analysts added, however, that the company has multiple ways to offset these headwinds, including through Aetna margin recovery, continued specialty pharmacy growth, and biosimilar adoption.

BofA reiterated a buy rating on the stock and cut its price objective to $110 from $120.

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