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On Friday, Cantor Fitzgerald reaffirmed its Overweight rating on Elevance Health (NYSE:ELV) shares, maintaining a price target of $485.00. According to InvestingPro data, the company maintains a GREAT financial health score, with analyst targets ranging from $405 to $625. The stock has shown impressive momentum, gaining over 23% year-to-date. The firm’s analyst, Sarah James, adjusted the forecast for the company’s fiscal year 2025 revenue, increasing it to $195.9 billion from the previously estimated $193.1 billion. Despite this change, the projected earnings per share (EPS) for fiscal year 2025 remain unchanged at $34.75. This follows the company’s strong performance, with current revenue at $176.81 billion and a healthy revenue growth forecast of 9% for FY2025.
The revision in revenue projections comes with a specific update to the first quarter earnings for fiscal year 2025. James has altered the initial EPS estimate for the quarter to $11.62, marking an increase from the earlier forecast of $11.04. This adjustment reflects a more accurate representation of the seasonality in the company’s earnings, particularly considering the impact of Part D, which is a part of the Medicare prescription drug benefit program.
Elevance Health, a leading health insurance provider, is expected to benefit from these revised projections. The company’s financial performance, as indicated by the adjusted forecasts, suggests a strong start to fiscal year 2025, with the first quarter earnings expected to set a positive tone for the year.
Investors and market watchers closely follow rating affirmations and target price adjustments as they provide insights into the potential performance of a company’s stock. Cantor Fitzgerald’s reiteration of the Overweight rating and the maintained price target for Elevance Health indicates confidence in the company’s ability to achieve the forecasted financial outcomes.
Elevance Health has not publicly responded to the updated projections by Cantor Fitzgerald. The company’s stock performance will continue to be monitored by investors as it works towards meeting these expectations in the upcoming fiscal year. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with 7 analysts recently revising their earnings estimates upward. For deeper insights into Elevance Health’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Elevance Health, Inc. has reaffirmed its earnings forecast for the full year 2025, projecting earnings between $30.40 and $31.10 per diluted share, with adjusted earnings expected to be between $34.15 and $34.85 per share. This projection aligns with the company’s previous forecasts and includes expectations for Medicare Advantage membership to range between 2.2 million and 2.25 million members by the end of 2025. Additionally, Bernstein analysts have raised their price target for Elevance Health to $585, citing optimism about the company’s earnings per share growth and a recovery in government-managed care margins. Cantor Fitzgerald also maintains an Overweight rating for Elevance Health, with a price target of $485, noting the company’s significant exposure to Medicaid expansion.
The company has been highlighted in a broader industry context, as the Department of Justice has initiated an investigation into UnitedHealth Group (NYSE:UNH)’s Medicare billing practices, causing a ripple effect of concern across the healthcare sector, including Elevance Health. Meanwhile, recent comments from President Trump supporting social programs like Medicare and Medicaid have positively influenced Elevance Health’s stock, which saw a 2.2% increase. Investors are keeping a close eye on these developments, as they could have substantial implications for Elevance Health’s financial performance and stock valuation.
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