Centene price target lowered to $65 from $72.50 at BofA

BofA lowered the firm’s price target on Centene (CNC) to $65 from $72.50 and keeps a Neutral rating on the shares. Despite an EPS beat and reiterated EPS guidance, the stock sold off on the worse MLR outlook for the year due to higher Marketplace enrollment at lower margins, higher Medicaid MLR including Q1 flu and higher drug use, and very high utilization of specialty drugs in non-low-income PDP members, notes the analyst, who lowered the firm’s multiple to reflect risks around the trend, funding cuts, and lower peer multiples.