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On Wednesday, Cantor Fitzgerald analysts reaffirmed an Overweight rating and maintained a $485 price target for Elevance stock (NYSE: ELV), which currently trades at $378.96, near its 52-week low. The analysts noted that total redetermination losses exceeded initial guidance by 62%, suggesting a potential margin headwind from the mix could be greater than initially expected. According to InvestingPro data, the company appears undervalued based on its Fair Value analysis.
The analysts highlighted that this aligns with recent commentary from Elevance, indicating that Caid utilization is decreasing at a slower pace than originally planned. They believe the mix is likely taking longer to stabilize but remains on the path to doing so. Despite these challenges, Elevance maintains strong fundamentals with a 6.63% revenue growth and a P/E ratio of 14.66.
The Overweight rating reflects a positive outlook on Elevance’s potential performance, with the analysts expressing confidence in the company’s ability to navigate the current challenges. The $485 price target underscores their expectations for future growth.
Elevance, a prominent player in the healthcare sector, continues to adapt to market dynamics, as indicated by the analysts’ assessment. The reiterated rating and price target suggest a favorable long-term view of the company’s prospects.
In other recent news, Elevance Health has reaffirmed its earnings guidance for the full year of 2025, projecting earnings per share between $28.30 and $29.00, with adjustments leading to an EPS range of $34.15 to $34.85 when excluding certain unfavorable items. Barclays (LON:BARC) has reiterated its Overweight rating on Elevance Health, maintaining a price target of $522.00, despite revising its second-quarter EPS forecast downward due to an increase in the medical loss ratio. Meanwhile, Cantor Fitzgerald also maintained its Overweight rating with a price target of $485.00, expressing confidence in the company’s earnings potential.
Additionally, Elevance Health was implicated in a False Claims Act complaint filed by the United States, alleging illegal kickbacks in Medicare Advantage plan enrollments. This lawsuit, which includes other major insurers and brokers, is being handled by the Justice Department. In corporate governance news, Elevance Health’s shareholders elected three directors and approved executive compensation at its recent Annual Meeting. The shareholders also ratified Ernst & Young LLP as the independent auditor for 2025 but did not approve a proposal on Diversity, Equity, and Inclusion efforts. These developments will be closely monitored by investors as they evaluate Elevance Health’s ongoing market position and financial performance.
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