Ryan Langston, an analyst from TD Cowen, maintained the Buy rating on Elevance Health. The associated price target was lowered to $330.00.
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Ryan Langston has given his Buy rating due to a combination of factors influencing Elevance Health’s financial outlook. Despite the challenges posed by elevated costs in the Health Insurance Exchange (HIX) and Medicaid (MDCD), Langston sees potential for modest earnings growth driven by the company’s non-HIX commercial and prescription segments. The company’s guidance for 2025 has been adjusted to account for these pressures, yet the expectation is that Medicare Advantage and Prescription Drug Plans will continue to perform in line with expectations.
Additionally, Elevance Health has highlighted a favorable settlement with a value-based care provider and an anticipated tax-related benefit, which are expected to provide temporary boosts to earnings. Although these benefits are not expected to recur in 2026, the company’s exposure to stable and potentially opportunistic segments like non-HIX commercial, Medicare Advantage, and prescription drugs supports a positive outlook. Consequently, Langston has set a price target of $330, reflecting a valuation of 10.3 times the estimated earnings per share for 2026.
According to TipRanks, Langston is an analyst with an average return of -17.9% and a 17.50% success rate. Langston covers the Healthcare sector, focusing on stocks such as UnitedHealth, Centene, and Humana.
In another report released on July 18, Barclays also maintained a Buy rating on the stock with a $358.00 price target.