In a report released today, Erin Wright from Morgan Stanley maintained a Hold rating on Elevance Health, with a price target of $316.00.
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Erin Wright has given his Hold rating due to a combination of factors impacting Elevance Health’s financial outlook. The company’s Medicaid and Exchange segments are facing elevated utilization rates, which have slightly missed expectations and are expected to continue throughout the year. This is attributed to higher acuity in the Exchange book and increased utilization trends, particularly in emergency room visits, behavioral health, and specialty prescriptions.
Additionally, Elevance Health’s stock valuation is currently trading below its historical average, and while there is potential for a modest upside, the overarching uncertainty surrounding future earnings and market conditions contributes to a cautious outlook. The ongoing negotiations for Medicaid state rates and the lack of finalized bids for the 2026 Exchange Marketplace further add to the uncertainty. These factors collectively lead to a Hold rating, reflecting a balanced view of potential risks and opportunities.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $330.00 price target.