Centene price target lowered to $43 from $51 at Oppenheimer

Oppenheimer lowered the firm’s price target on Centene (CNC) to $43 from $51 and keeps an Outperform rating on the shares. The firm notes Centene presented a roadmap into 2026 and beyond as it overcomes the operational/regulatory hurdles of Medicaid/Marketplace that the company and its peers are struggling with. The company issued FY2025 EPS guidance of $1.75, vs. prior guidance of over $7.25, with a bridge from prior-levels being driven by -$2.6B from Marketplace; -$2.1B from Medicaid, partially offset by Medicare and cost-management. While the timeline to recovery in each business could be uneven, Centene provides essential services to the healthcare system and should recover margins over time, says Oppenheimer.