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Investing.com - Leerink Partners has raised its price target on Elevance (NYSE:ELV) to $350.00 from $310.00 while maintaining a Market Perform rating on the stock. The healthcare giant, currently valued at $78.76 billion, trades at a P/E ratio of 14.94x. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
The research firm’s adjustment follows Elevance’s third-quarter results, which revealed deteriorating margins across the company’s Medicaid business and projections that 2026 will be another down year for the healthcare company. Despite these challenges, InvestingPro data shows the company maintains strong fundamentals with a ’GREAT’ financial health score and robust revenue growth of 10.21% over the last twelve months.
Leerink Partners noted that Elevance appears to be positioning 2026 as the bottom of its current cycle, though the firm highlighted that trends continue to run "hot" across multiple lines of business.
The research note pointed to additional headwinds of approximately $1 per share expected next year related to Carelon investments, describing the overall backdrop as "persistently complex."
Despite these challenges, Leerink Partners acknowledged that Elevance’s margin assumptions for 2026 appear "more believable," with the firm’s own analysis projecting earnings below $27 per share for 2026.
In other recent news, Elevance Health Inc. reported impressive financial results for the third quarter of 2025, significantly surpassing earnings expectations. The company achieved an adjusted diluted earnings per share (EPS) of $6.30, which was well above the anticipated $4.95, representing a 21.82% surprise. Revenue for the quarter reached $50.09 billion, slightly exceeding the expected $49.34 billion. These developments highlight the company’s strong performance in the latest quarter. Despite these robust figures, it was noted that Elevance Health’s stock experienced a decline in pre-market trading. The current developments provide investors with key insights into the company’s financial health and market position.
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