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Investing.com - Cantor Fitzgerald maintained its Neutral rating and $38.00 price target on Centene (NYSE:CNC) stock on Tuesday. The healthcare provider’s shares, which have declined nearly 49% over the past six months, currently trade at an attractive 7.1x P/E ratio. According to InvestingPro analysis, the stock appears undervalued at current levels.
The investment firm’s decision comes after analysis of Kaiser Family Foundation data showing Centene proposed the highest rate increases in 29% of states where it operates.
According to the data, Centene is seeking the highest rates in 8 of its 28 states captured in the Kaiser data, comparable to UnitedHealth’s 31% and Molina’s 27%, while Cigna and Oscar Health were not the highest in any states.
Cantor Fitzgerald noted that despite these aggressive rate increase proposals, it believes Centene is unlikely to exit any state markets.
The firm indicated its outlook on Centene has worsened based on the data showing the company is pursuing the highest possible rates in multiple states.
In other recent news, Centene Corporation reported its Q2 2025 results, revealing a significant earnings miss with an adjusted loss per share of $0.16, falling short of the forecasted earnings per share of $0.23. Despite this earnings miss, the company experienced strong revenue performance, which contributed to a positive outlook for future profitability. In another development, Centene announced the resignation of Director Wayne S. DeVeydt, reducing the board size to ten members. The company clarified that DeVeydt’s resignation was not due to any disagreement with Centene or its board. Meanwhile, Cantor Fitzgerald downgraded Centene’s stock rating from Overweight to Neutral, citing macroeconomic uncertainties in the Health Insurance Exchange and Medicaid markets. The firm also lowered its price target significantly, expressing concerns about Centene’s earnings exposure to the HIX segment. In other corporate news, eHealth, Inc. appointed Derrick Duke as its new CEO, effective September 18, 2025, succeeding Fran Soistman, who will retire but remain on the Board of Directors and serve as an executive advisor through the end of the year.
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