Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Goldman Sachs raised its price target on Centene (NYSE:CNC) stock to $38.00 from $33.00 on Wednesday, while maintaining a Sell rating following the healthcare company’s third-quarter earnings report. Centene shares currently trade at $37.34, already approaching Goldman’s new target, despite InvestingPro data suggesting the stock is significantly undervalued based on its Fair Value assessment.
Centene shares jumped 12.5% on Tuesday after reporting adjusted earnings per share of $0.50 for the third quarter of 2025, significantly exceeding Goldman Sachs and consensus estimates, which had projected losses of $(0.12) and $(0.14) per share respectively. This surge contributed to the stock’s impressive 8.67% return over the past week, according to InvestingPro data, which also reveals the company trades at a modest P/E ratio of 8.02.
The company also raised its full-year 2025 adjusted EPS guidance to $2.00 from the previous $1.75, despite recording a non-cash goodwill impairment of $6.7 billion driven by market conditions, including the One Big Beautiful Bill Act and stock price decline. This updated guidance exceeds the current analyst EPS forecast of $1.73 for fiscal 2025, while the company maintains a "GREAT" overall financial health score according to InvestingPro metrics.
Goldman Sachs noted that investor expectations were tilted toward fear heading into the earnings report, especially after three major competitors signaled continued pressure on Medicaid fundamentals and margins.
The investment bank maintained its Sell rating based on Centene’s market-leading positions in Medicare Prescription Drug Plans and Health Insurance Exchange markets, which Goldman Sachs views as heavily dependent on taxpayer subsidies, creating elevated margin and earnings uncertainty for 2026.
In other recent news, Centene Corporation reported its third-quarter 2025 earnings, surpassing analyst expectations. The company achieved an adjusted earnings per share of $0.50, significantly higher than the forecasted -$0.16. Revenue for the quarter reached $49.69 billion, exceeding the anticipated $47.83 billion. These results reflect a strong performance for the company, drawing positive attention from investors. Additionally, the earnings announcement has been a focal point for analysts and investors alike. The impressive financial results have led to increased interest in Centene’s future prospects. Analyst firms have taken note of Centene’s performance, emphasizing the importance of these results for future evaluations. The earnings surprise has been a key development in recent news surrounding the company.
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