Cantor Fitzgerald maintains Overweight on Centene shares, $90 target

Published 16/05/2025, 12:40
Cantor Fitzgerald maintains Overweight on Centene shares, $90 target

On Friday, Cantor Fitzgerald reaffirmed its Overweight rating on Centene Corporation (NYSE:CNC), with a steady price target of $90.00. The firm’s analyst highlighted the potential positive impact of the proposed E&C Committee Budget Reconciliation Bill on the healthcare sector, particularly noting benefits for Centene and Molina Healthcare (NYSE:MOH).

The analyst’s commentary focused on the weakening of the policy Bear Thesis as outlined in their Policy Analysis. According to the analyst, the most significant aspects of the bill are related to work requirements. The implementation of these requirements is expected to positively influence the industry, especially for companies like Centene and Molina Healthcare, as the impact on their earnings would be minimal.

Centene Corporation, a multi-national healthcare company with $153.27 billion in revenue, provides a portfolio of services to government-sponsored healthcare programs, focusing on under-insured and uninsured individuals. The company’s performance in the market is often influenced by legislative changes, making the proposed bill a notable factor for its future outlook. InvestingPro data shows the company maintains a GREAT financial health score, operating with moderate debt levels and strong market position.

The stock’s price target set by Cantor Fitzgerald indicates confidence in Centene’s ability to perform well despite the current healthcare policy environment. The Overweight rating suggests that the firm believes Centene stock has a higher potential for return compared to the average equity in the analyst’s coverage universe.

Investors and market watchers typically monitor such ratings and price targets closely, as they can impact investor sentiment and influence stock market movements. The reaffirmed rating and price target for Centene by Cantor Fitzgerald thus remain significant for shareholders and potential investors, signaling a continued positive outlook for the company’s stock. InvestingPro has identified several additional bullish factors, including management’s aggressive share buybacks and the company’s attractive revenue valuation multiple. Subscribers can access the comprehensive Pro Research Report covering Centene’s detailed financial analysis and growth prospects.

In other recent news, Centene Corporation reported its first-quarter 2025 earnings, surpassing expectations with an adjusted diluted earnings per share of $2.90, compared to the forecasted $2.38. Revenue for the quarter also exceeded projections, reaching $48.62 billion against a forecast of $42.79 billion. The company has revised its full-year 2025 EPS outlook to greater than $7.25 and increased its premium and service revenue guidance to $165 billion. Meanwhile, Jefferies adjusted its outlook on Centene by reducing the price target from $64.00 to $61.00, maintaining a Hold rating on the shares due to increased utilization pressure in segments like Medicaid and Health Insurance Marketplace. Centene’s annual shareholder meeting saw the approval of key proposals, including the election of eleven directors and the 2025 Stock Incentive Plan, while two climate-related shareholder proposals were not approved. Additionally, the appointment of KPMG LLP as Centene’s independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. These developments reflect Centene’s ongoing efforts to navigate challenges in its business environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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