Elevance (ELV) PT Raised to $511 at Bernstein Following a 'Stable Quarter'

Bernstein SocGen Group analyst Lance Wilkes raised the price target on Elevance (NYSE: ELV) to $511.00 (from $502.00) while maintaining a Outperform rating.

The analyst commented: "Stable quarter, modest '25 guidance and attractive valuation; ELV announced 4Q24 results with adj EPS at $3.84, in line with cons. Revenues came in line at $45.0B. MLR came in at 92.4%, ~10bps below cons. The company also provided ‘25 guide. Adj EPS is guided to a range of $34.15-34.85 vs cons at $34.87. 25 guide is modest but consistent with prior comments. ELV also provided ‘25 guide. Adj EPS is guided to an initial range of $34.15-34.85 vs cons at $34.87. The guide is more conservative on MLR (guided to 89.1% +/- 50bps vs cons at 88.7%). MLR increase in 25 driven by Part D redesign and the mix changes due to the Carebridge acquisition.

We maintain our LT thesis on ELV seeing strong opportunities from recovery in margin in gov’t MCO lines, and the growth from the Services build out. We see Medicaid / safety net policy uncertainty as slowing valuation improvement in early ‘25, but see 26 - 28 growth as justifying much higher multiple."

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