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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating for Elevance (NYSE:ELV) with a price target of $400.00. The healthcare giant, currently valued at $78.76 billion, trades at an attractive P/E ratio of 14.94x. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
The research firm expressed a cautious outlook on the 2026 Medicaid environment following Elevance’s recent report, while noting there are conservative elements in their 2026 earnings-per-share projections across other business segments. Despite these concerns, InvestingPro data shows the company maintains strong financial health with a GREAT overall score and solid revenue growth of 10.21% in the last twelve months.
Cantor Fitzgerald identified execution in Medicare Advantage, commercial business, and Carelon as critical components for Elevance’s 2026 and 2027 performance, particularly as Medicaid visibility becomes increasingly uncertain.
The firm sees potential for Elevance to outperform expectations in Medicare Advantage and Carelon segments specifically, providing some counterbalance to concerns.
Despite these opportunities, Cantor Fitzgerald maintains a bearish outlook on Medicaid and believes it is premature to predict Medicaid margin expansion for 2027.
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 projected $4.95, resulting in a 21.82% surprise. Revenue for the quarter reached $50.09 billion, slightly above the anticipated $49.34 billion. Despite the strong earnings performance, Leerink Partners has adjusted its price target for Elevance to $350.00 from $310.00, maintaining a Market Perform rating. This adjustment follows concerns over deteriorating margins in Elevance’s Medicaid business and projections that 2026 may be another challenging year for the company. These recent developments provide investors with key insights into Elevance’s current financial health and market outlook.
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