CVS Health (CVS) is still "long crowded and well-liked" by investors ahead of next week's investor event, amid expectations for upside compared with near- and long-term consensus estimates, UBS said in a note Wednesday.

The investment firm said CVS investors will be eyeing factors like the margin recovery of the company's Health Care Benefits business, the mitigation of potential recontracting risk and rebate guarantee pressure on Caremark, as well as the earnings stabilizations of the company's Pharmacy and Consumer Wellness segment.

"Disappointment on the first two focuses would be negatively received and likely pressure the stock," UBS said.

The investment firm said that there is an expectation that CVS' 2025 guidance will be lifted modestly and that the company's initial 2026 outlook will "likely move up accordingly by a marginal amount," which would be between $0.05 and $0.10.

UBS said it would view this outlook as "conservative" compared with current buy-side estimates, but "enough (given upside seen versus CVS' initial 2025 outlook YTD) for the stock to continue to work into 2026."

UBS has a buy rating on CVS and $96 price target.

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