Analyst A.J. Rice of UBS maintained a Buy rating on Elevance Health, retaining the price target of $425.00.
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A.J. Rice has given his Buy rating due to a combination of factors that suggest a positive outlook for Elevance Health. One of the primary reasons is the expected benefit to the company’s earnings per share (EPS) from several nonrecurring items in 2025, including a favorable tax item and investment income, which collectively add a significant boost to the EPS. Additionally, despite challenges in the Medicaid segment, the company has managed to offset these with favorable conditions in the Health Insurance Exchange (HIX) market.
Moreover, Elevance Health’s strategic pricing adjustments and the potential for enhanced subsidies could further strengthen its position. Although there are uncertainties regarding Medicaid margins and the retention of members from MA plan exits, the company has shown resilience through its repricing strategies and growth opportunities in other segments like Carelon. These factors combined present a compelling case for a Buy rating as they indicate potential for growth and profitability.
In another report released on September 5, Bernstein also maintained a Buy rating on the stock with a $445.00 price target.