CVS Health (NYSE:CVS) saw a nearly 2% gain yesterday as Evercore ISI analysts upgraded their rating on the healthcare company from in line to outperform. Alongside the rating upgrade, they also increased the price target for CVS shares from $81 to $83, citing an improved outlook and an attractive valuation.

The analysts acknowledged that CVS is a complex organization but pointed out several factors that are moving in a positive direction. In the previous month, CVS Health maintained its adjusted profit outlook for the current year, despite anticipating that its medical benefit ratio, a measure of claims versus premiums collected, would be at the higher end of its 2023 guidance due to elevated medical costs.