Movement Alert|CVS Health Falls 3.19% in After-Hours Trading, 340B Profit Concerns Overshadow Boston Pharmacy-Focused Store Opening

Market Focus
Oct 09

On October 8, CVS Health fell 3.19% in after-hours trading, trading at $85.95 per share, with turnover of $37.95 million. The company's announcement of its first pharmacy-focused location in the Boston area failed to support the stock, as market focus shifted to earnings pressure from the 340B drug discount program.

BofA Securities maintained a buy rating but cut its price target to $110 from $120. The firm noted larger earnings risks in 2027, estimating that proposed 340B reimbursement rule changes could create a $600 million to $700 million EBIT headwind. Although the company could offset these via Aetna margin recovery, short-term valuation remains under pressure.

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