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Wolfe not a buyer of Centene on weakness given 2026 uncertainty

Wolfe Research analyst Justin Lake reiterated a Peer Perform rating on Centene (CNC) after the company announced the withdrawal of 2025 guidance driven by significant pressure in its health insurance business and the elevated cost trend in Medicaid. The firm lowered its EPS estimates for 2025 and 2026 with the expectation that in addition to HIX pressure, Medicaid pressure is unlikely to be offset by Medicare/SG&A given Medicaid is a much larger business. Wolfe added that it would not be a buyer on Wednesday’s weakness given uncertainty in 2026.

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