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Investing.com - Bernstein SocGen Group has reduced its price target on Elevance (NYSE:ELV) to $420.00 from $445.00 while maintaining an Outperform rating on the healthcare company’s stock. The company, currently valued at $78.7 billion, trades at an attractive P/E ratio of 15x and has demonstrated solid revenue growth of 10.2% over the last twelve months.
The firm cited expectations for improved earnings quality in 2026 and a partial recovery in government line margins, which it projects will return to approximately two-thirds of pre-COVID levels.
Bernstein SocGen Group noted that Elevance’s valuations appear attractive over the long term as these operational improvements materialize.
The research firm identified potential upside for Elevance between 2027 and 2029 as the company integrates acquired capabilities within its Carelon division, which could drive earnings growth during this period.
Additional upside may come from further recovery in Medicaid margins by 2029, according to the firm’s analysis of the health insurer’s prospects.
In other recent news, Elevance Health has been the subject of multiple analyst updates. Cantor Fitzgerald reiterated its Overweight rating on Elevance, maintaining a price target of $400.00. The firm highlighted some enrollment volatility, noting shifts ranging from negative 1% to positive 1% in specific states, which could impact the company’s performance. Guggenheim also adjusted its outlook on Elevance, raising the price target to $398.00 from $360.00 and maintaining a Buy rating. This adjustment reflects improved market sentiment and higher peer multiples. Additionally, Cantor Fitzgerald mentioned that 10% of Elevance’s membership is enrolled in 5-Star Medicare Advantage plans for the upcoming year. The firm also noted that the majority of finalized 2026 Marketplace rates in 15 states align with payor proposals, though they remain below the anticipated 30%+ increases. Meanwhile, Bernstein raised its price target for UnitedHealth Group, another major player in the sector, indicating a broader recovery opportunity for managed care organizations like Elevance.
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