Centene price target raised to $35 from $33 at Barclays

Barclays analyst Andrew Mok raised the firm’s price target on Centene (CNC) to $35 from $33 and keeps an Equal Weight rating on the shares. Following Centene’s better than feared Medicaid update and reiteration of the full-year EPS outlook, the firm has received a number of inbounds around implications for 2026 EPS. As such, based on Centene’s reiterated 2025 EPS baseline of $1.75, Barclays sensitize 2026 EPS on ACA and Medicaid margin improvement. At face value, the company’s commentary – including a return to ACA profitability and Medicaid margin improvement – implies 2026 EPS in the range of $2.75-$4.50, the firm says. Note, every 50 bps of Medicaid margin is worth 70c to EPS and every 50 bps of ACA margin is worth 25c to EPS, all else equal, Barclays adds.