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Pro Analysis

CVS downgraded due to competition: Morgan Stanley

A pedestrian passes a CVS store in New York.
Scott Mlyn | CNBC
A pedestrian passes a CVS store in New York.

CVS Health shares could come under pressure due to greater price and market share competition, according to Morgan Stanley, which downgraded the shares of the company to equal weight from overweight.

"CVS is facing increased competition in the PBM [pharmacy benefit manager] market from deep-pocketed OptumRx which will likely slowdown its historical winning streak and cap share performance," Morgan Stanley's Ricky Goldwasser wrote in a note to clients Monday.

"Optum's position in the marketplace is reinforced by our consultant checks last Thursday highlighting that the combination of a compelling message, support from parent United Health, and competitive pricing is resonating with clients."