OSH - Oak Street Health drops on report CVS may be unlikely to purchase

Oak Street Health ( NYSE: OSH ) fell 6.8% on a report that CVS Health ( NYSE: CVS ) is unlikely to acquire the primary care service provider.

CVS is unlikely to by Oak Street Health ( OSH ) as it has several other issues it's dealing with, including its planned $8 billion acquisition of Signify Health ( SGFY ), according to an Axios report, which cited comments from sell-side analysts, bankers  and advisers on the sidelines of the JPMorgan Healthcare conference last week.

One unidentified banker said that the CVS ( CVS ) didn't have the money to buy Oak Street Health ( OSH ) right now.

The report comes after Bloomberg last Monday reported that CVS ( CVS ) was exploring a $10 billion purchase of the Oak Street Health ( OSH ), sending its shares skyrocketing 27% last Tuesday. CVS Health CEO Karen Lynch last Tuesday said the company will continue to look for additional assets, including primary care capabilities.

The Axios report also comes after Dealreporter in October threw cold water on report that CVS Health was in talks to purchase Oak Street competitor Cano Health ( CANO ).

The report about the CVS interest in Oak Street prompted Raymond James on Friday to upgrade Oak Street ( OSH ) to an outperform from a market perform.

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