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Cantor Fitzgerald reiterated an Overweight rating and $90.00 price target on Centene (NYSE:CNC) Tuesday, representing significant upside potential from the current price of $54.68, which trades near its 52-week low. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model. The firm assessed the impact of tightened Medicaid work requirements on the health insurer.
The Senate version of the bill applies work requirements to adults with dependent children older than 14, while the House version exempts all adults with dependent children. Despite this tightening, Cantor Fitzgerald estimates work requirements will have a limited impact on Centene, which maintains a strong financial health score and generates over $153 billion in annual revenue.
The Congressional Budget Office estimates the House version would result in approximately 4.8 million people, or 6% of total Medicaid enrollees, being disenrolled due to work requirements. This disenrollment primarily affects the TANF population, which represents 17% of the $880 billion total Medicaid spend and 48% of the 79 million Medicaid enrollees.
Based on these figures, Cantor Fitzgerald calculates the impact on total Medicaid spending would be approximately 1%. The firm estimates the enrollment loss would translate to a 0.6% impact on 2026 earnings per share for both Centene and Molina Healthcare (NYSE:MOH).
The analysis comes as lawmakers continue to debate Medicaid eligibility requirements, which could affect enrollment numbers for managed care organizations that administer Medicaid benefits. For deeper insights into Centene’s financial health and comprehensive analysis, including additional ProTips and detailed metrics, investors can access the full research report on InvestingPro.
In other recent news, Centene Corporation’s latest developments have garnered attention from various analysts and investors. Morgan Stanley (NYSE:MS) initiated coverage on Centene with an overweight rating, setting a price target of $70, citing the company’s strong market position and potential growth opportunities in higher margin segments. In contrast, Barclays (LON:BARC) downgraded the stock to equalweight, expressing concerns about challenges in the Part D and Affordable Care Act segments, and adjusted its earnings per share estimates for 2025 and 2026. Meanwhile, Cantor Fitzgerald maintained its overweight rating with a $90 price target, highlighting Centene’s resilience amid enrollment disruptions and potential legislative impacts.
During Centene’s recent annual shareholder meeting, several key proposals were voted on, including the election of eleven directors and the approval of the 2025 Stock Incentive Plan. The meeting also saw the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. However, two shareholder proposals related to climate change did not receive majority support. These recent developments provide insight into Centene’s strategic direction and the perspectives of various stakeholders.
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