Joanna Gajuk, an analyst from Bank of America Securities, reiterated the Hold rating on Elevance Health (ELV – Research Report). The associated price target was raised to $480.00.
Joanna Gajuk has given her Hold rating due to a combination of factors influencing Elevance Health’s current and future performance. One of the primary reasons is the elevated trend in Medicare Advantage (MA) costs, which, although in line with expectations, continues to exert pressure on margins. Despite this, Elevance Health has shown confidence in its guidance for the year, suggesting that the trends are developing as anticipated.
Another factor contributing to the Hold rating is the potential risk associated with Medicaid reforms and the possibility of mispricing in the MA business. While there is an expectation of stable MA margins by 2025 due to effective cost management and strong member retention, there are concerns about the impact of future regulatory changes. Additionally, the company’s valuation adjustments, based on lower peer multiples, and the expectation of mid-single-digit attrition in early Q2 further support the decision to maintain a Neutral stance on the stock.
In another report released on April 15, Morgan Stanley also maintained a Hold rating on the stock with a $428.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ELV in relation to earlier this year.