In a report released today, Ryan Langston from TD Cowen maintained a Buy rating on Centene (CNC – Research Report), with a price target of $73.00.
Ryan Langston has given his Buy rating due to a combination of factors that reflect Centene’s financial outlook and strategic adjustments. Despite a reduction in the price target from $80 to $73, Langston acknowledges Centene’s ability to maintain its earnings per share guidance for the fiscal year, indicating stability in its financial performance. The company has successfully increased its premium and service revenue projections by $10 billion, showcasing its capability to enhance revenue streams.
Additionally, Centene’s progress in updating Medicaid rates and managing utilization pressures, such as those from flu and specialty drugs, demonstrates its proactive approach to mitigating risks. The company’s strategic focus on expanding its membership base, particularly in the marketplace segment, further supports its growth potential. These factors combined suggest that Centene is well-positioned to navigate current challenges and capitalize on future opportunities, justifying the Buy rating.
In another report released today, Oppenheimer also maintained a Buy rating on the stock with a $85.00 price target.