Cantor Fitzgerald Reiterates Underweight Rating on Elevance (ELV)

Cantor Fitzgerald analyst Sarah James reiterated an Underweight rating and $485.00 price target on Elevance (NYSE: ELV).

The analyst said, “ELV's 4Q24 earnings were encouraging, but many may stay cautious as MA enrollment remains a "show-me" story. CMS's January and February enrollment data prove to be a stronger sentiment catalyst than earnings, as a slight MLR beat in today's payor environment would typically prompt a more positive response than a +3% stock movement (vs. SP500 +1%). Post speaking to management, we are incrementally more confident CMS enrollment data will revise down to meet ELV's guidance. Outside of MA, what is incrementally positive to us is less bearish Caid commentary and confirmation that commercial trends aren’t adding new pressure. We believe marketplace membership likely grew slightly above market.”

“Bridging to 2025. Management guided to a more front-end loaded year with 30%+ EPS in 1Q25 and 60% in 1H25 vs FactSet cons prior today's guidance at 29% EPS in 1Q25 and 59% in 1H25 vs. in 2024, 32% in 1Q24 and 63% in 1H24. Stronger 1H25 EPS weighting vs. consensus considers 1) the IRA change shifting PDP profitability to 1H vs. 2H, 2) non repeat of leap year, ELV & HUM assumed 70-80bps MLR impact in 2Q24, UNH 30bps, 3) CareBridge acquisition, 4) member mix and 5) prudence in cost trend. We discussed cost trend assumptions by segment from '24 to '25 and areas of conservatism” she added.

For an analyst ratings summary and ratings history on Elevance click here. For more ratings news on Elevance click here.

Shares of Elevance closed at $401.36 yesterday.

You May Also Be Interested In

• Cantor Fitzgerald Reiterates Overweight Rating on Global Net Lease (GNL)
• Benchmark Reiterates Buy Rating on NANO Nuclear Energy (NNE)
• Jefferies sees a buying opportunity in this S&P 500 sector