Leerink Partners analyst Whit Mayo reiterated a Buy rating on Elevance Health (ELV – Research Report) yesterday and set a price target of $463.00.
Whit Mayo has given his Buy rating due to a combination of factors that suggest a favorable outlook for Elevance Health. The analyst highlights the company’s updated model, which incorporates 10-K disclosures and a more refined understanding of seasonality. This year, the first quarter is expected to show more pronounced earnings seasonality due to a favorable calendar with fewer workdays, changes in Part D seasonality aligning more closely with medical benefits, and a shift in member mix towards higher ACA enrollment.
Furthermore, Mayo maintains confidence in the company’s full-year estimates, which remain unchanged despite potential investor concerns regarding cost trends and Medicaid margin recovery. The analyst’s price target for Elevance Health is set at $463, based on a 13.5x P/E multiple applied to the 2025 EPS estimate, reflecting a slight discount to historical averages due to below-average earnings visibility. These factors collectively support the Buy rating, indicating a positive long-term growth outlook for the company.
According to TipRanks, Mayo is a 3-star analyst with an average return of 1.8% and a 46.09% success rate. Mayo covers the Healthcare sector, focusing on stocks such as Pediatrix Medical Group, Acadia Healthcare, and Humana.
In another report released on April 15, TD Cowen also maintained a Buy rating on the stock with a $484.00 price target.