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Investing.com - TD Cowen has reduced its price target on Elevance Health (NYSE:ELV) to $330.00 from $484.00 while maintaining a Buy rating on the stock. The healthcare giant, currently valued at $62.6 billion, is trading near its 52-week low of $276.41, with InvestingPro analysis indicating the stock is undervalued at current levels.
The firm cited elevated pressures in Health Insurance Exchange (HIX) and Medicaid (MDCD) segments as key factors behind the decision to lower both its price target and earnings estimates for the health insurer. This aligns with InvestingPro data showing 13 analysts have recently revised their earnings estimates downward, though the company maintains strong revenue growth of 10.2% over the last twelve months.
TD Cowen revised its earnings per share estimates for Elevance to $29.63 for 2025 and $32.00 for 2026, down from previous projections of $34.47 and $38.82, respectively.
The new price target of $330 represents a multiple of 10.3 times the firm’s 2026 EPS estimate, reflecting what TD Cowen described as "continued uncertainty in a highly dynamic environment."
Despite these pressures, TD Cowen noted that Elevance maintains higher relative exposure to non-HIX commercial, Medicare Advantage, and prescription segments, which the firm views as areas of stability and potential opportunity compared to other managed care organizations.
In other recent news, Elevance reported a second-quarter earnings per share of $8.84, marking a 12.6% decline year-over-year and falling short of consensus estimates by $0.14. The company reduced its full-year 2025 earnings per share guidance to $30.00, down from the previous range of $34.15 to $34.85, amid ongoing cost pressures in its Medicaid and Affordable Care Act Public Exchange businesses. UBS lowered its price target for Elevance to $435, maintaining a Buy rating, while Guggenheim reduced its target to $360, also keeping a Buy rating. Cantor Fitzgerald reiterated an Overweight rating with a $400 price target, expressing concerns about the 2025 baseline due to non-repeating positive factors. Leerink Partners downgraded Elevance to Market Perform, reducing its price target to $310, citing growth concerns and limited upside potential. BofA Securities adjusted its price target to $350, maintaining a Neutral rating, and noted challenges in the exchange and Medicaid markets. Despite these developments, some analysts see potential for earnings stability and growth in certain segments of Elevance’s business.
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