Bank of America Securities analyst Joanna Gajuk reiterated a Hold rating on Centene today and set a price target of $52.00.
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Joanna Gajuk’s rating is based on a combination of factors impacting Centene’s financial outlook. The company has withdrawn its 2025 guidance due to higher than expected acuity in its Marketplace population and an elevated Medicaid trend, which poses challenges to its revenue projections. This situation is particularly concerning as Centene is significantly exposed to both the Marketplace and Medicaid sectors, which are experiencing unfavorable conditions.
Additionally, Centene’s estimates have been reduced, and the price objective has been lowered to $52, reflecting the anticipated impact on earnings. Despite some positive trends in its Medicare Advantage business, the overall environment for Marketplace and Medicaid remains challenging. The expectation that Medicaid rates will eventually align with these trends supports the Hold rating, as it suggests a potential for stabilization in the future.
In another report released today, Barclays also maintained a Hold rating on the stock with a $45.00 price target.