Street Calls of the Week
Investing.com - Cantor Fitzgerald maintained its Overweight rating on Elevance Health (NYSE:ELV), a prominent healthcare provider with an $80.6 billion market cap, with a price target of $400.00 on Friday. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall rating and has demonstrated solid revenue growth of 10.2% over the last twelve months.
The research firm noted that 10% of Elevance’s membership is enrolled in 5-Star Medicare Advantage plans for the upcoming year, compared to 6% in 2025.
This performance contrasts with UnitedHealth Group, which has 1% of its membership in 5-Star plans versus 0% in 2025, according to Cantor Fitzgerald’s analysis.
The firm clarified that there are no additional bonus payments for 5-Star plans compared to 4-Star plans in the Medicare Advantage program.
Cantor Fitzgerald indicated that the higher 5-Star plan enrollment provides "further comfort on company-specific Stars strategies" for Elevance Health.
In other recent news, Elevance Health has seen notable developments regarding its stock ratings and market outlook. Guggenheim has increased its price target for Elevance to $398, maintaining a Buy rating, citing improved market sentiment and higher peer multiples. Meanwhile, Cantor Fitzgerald has reiterated its Overweight rating with a price target of $400, despite noting enrollment volatility in specific states that could impact the healthcare company’s performance. Additionally, Cantor Fitzgerald has observed that while 2026 Marketplace rates in 15 states align with payor proposals, they remain below the initially expected increases, prompting a cautious outlook for the upcoming marketplace environment.
In related industry news, Bernstein SocGen Group has raised its price target for UnitedHealth Group to $379, maintaining an Outperform rating, and highlighting the security of diversified managed care organizations like UnitedHealth Group and Elevance Health amid a sector-wide recovery opportunity. In another development, the U.S. government’s efforts to hire medical coders for auditing Medicare Advantage insurance plans have fallen short of the target, raising questions about addressing potential overpayments and clearing the backlog. These recent updates provide a snapshot of the evolving landscape in the healthcare sector, with analysts closely monitoring company performances and broader market trends.
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