CVS Health (CVS) is having a "nice" start to 2025 as it posted "strong" Q1 results and cash flow generation, and ultimately lifted its annual outlook, Truist Securities said in a Thursday note.

The company's collaboration with Novo Nordisk (NVO) involving Wegovy weight loss drug looks to be an "attractive opportunity," analysts led by David MacDonald wrote.

Additionally, CVS intends to exit the Individual Exchange business next year in regions where it is an independent operator, as its management expects no "meaningful improvement" in the segment, the analysts said.

"Regarding utilization, trends remain elevated though are running broadly in-line with management expectations and the company called out signs of stabilization," the analysts said.

Truist Securities maintained its buy rating and $82 price target on CVS stock.

Shares of the company were down 1.7% in recent Friday trading.

Price: 68.26, Change: -1.20, Percent Change: -1.72