Analyst David Windley of Jefferies maintained a Buy rating on Elevance Health (ELV – Research Report), boosting the price target to $488.00.
David Windley has given his Buy rating due to a combination of factors that suggest a positive outlook for Elevance Health. The recent Medicaid rate updates have addressed a significant portion of the rate-acuity mismatch, which is expected to stabilize the Medicaid Medical Loss Ratio (MLR) and potentially allow for margin expansion in the future. Despite a conservative guidance for the MLR increase, the adjustments in Medicaid rates provide a foundation for improved financial performance.
Additionally, the recasting of CareMore’s financial results has revealed a more favorable margin situation than initially anticipated, contributing to a better-than-expected start to the fiscal year. Although there are some challenges with Health Insurance Exchange (HIX) effectuation and commercial risk retention, the overall impact is manageable. The company’s strategic moves in Medicare Advantage (MA) and capitation efforts further bolster confidence in its ability to enhance margins and drive earnings growth. These factors collectively underpin the Buy rating, as they indicate potential for sustained improvement in Elevance Health’s financial metrics.
According to TipRanks, Windley is a 5-star analyst with an average return of 9.6% and a 59.71% success rate. Windley covers the Healthcare sector, focusing on stocks such as Centene, Charles River Labs, and Elevance Health.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $478.00 price target.