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Investing.com - Bernstein has reduced its price target on Elevance Health (NYSE:ELV) to $412.00 from $420.00 while maintaining an Outperform rating, citing a delayed recovery timeline but larger eventual recovery than previously anticipated. According to InvestingPro data, the healthcare giant, currently valued at $76.08B, shows strong financial health with an overall score of "GREAT" and trades at an attractive P/E ratio of 14.04.
The healthcare company reported third-quarter 2025 adjusted earnings per share of $6.03, exceeding consensus estimates by 22%, with revenues of $50.1 billion, approximately 1% above expectations. The company has maintained impressive revenue growth of 10.21% over the last twelve months. Elevance’s medical loss ratio (MLR) came in at 90.3%, about 50 basis points below consensus.
Quarterly MLR was reported at 91.3%, approximately 50 basis points below the 91.8% consensus and 180 basis points higher year-over-year, driven by Part D seasonality changes in Medicare Advantage. The Health Care Benefits segment saw 10% year-over-year revenue growth but experienced margin compression from deterioration in Marketplace and Medicaid performance.
Medicaid margins are projected around -0.5% for 2025, while Individual marketplace business margins are expected to be approximately -2%. Carelon, the company’s services division, reported 33% revenue growth despite slight margin compression of 160 basis points, with Carelon Services earnings increasing 20% due to acquisitions.
Bernstein expects Elevance to experience a strong recovery from the insurance cycle in 2027 and beyond, noting that the company’s services strategy adds growth and stability to its business model. InvestingPro analysis suggests the stock is currently undervalued, with additional metrics and insights available in the comprehensive Pro Research Report, part of the extensive coverage of 1,400+ US equities on the platform.
In other recent news, Elevance Health Inc. reported impressive financial results for the third quarter of 2025, surpassing earnings expectations. The company achieved an adjusted diluted earnings per share (EPS) of $6.30, significantly higher than the forecasted $4.95. Revenue also exceeded expectations, reaching $50.09 billion compared to the anticipated $49.34 billion. Despite these robust figures, analysts have expressed mixed reactions to Elevance’s future prospects. Cantor Fitzgerald reiterated its Overweight rating for Elevance, setting a price target of $400 while expressing caution about the 2026 Medicaid environment. Leerink Partners raised its price target to $350 from $310, maintaining a Market Perform rating due to concerns over deteriorating margins in Elevance’s Medicaid business. These analyst insights highlight differing views on the company’s performance and future outlook.
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