Deutsche Bank Downgrades Elevance (ELV) to Hold

Deutsche Bank analyst George Hill downgraded Elevance (NYSE: ELV) from Buy to Hold with a price target of $320.00 (from $332.00).

The analyst comments "We recently revisited ELV's public disclosures, caught up with the company, and fine-tuned our 2026 outlook. The company maintained its 2025 EPS guidance of ~$30, pointing to a baseline for 2026 earnings of around $27 after excluding $3 of discrete, nonrecurring items. We have trimmed our estimates and now model the company to deliver adjusted EPS of $26.72 (-11%), below the $27.21 consensus. We expect the company's initial guidance to be prudent and mostly in line with the Street as its MCO business continues to face regulatory uncertainties, a challenging rate environment, rising utilization, and market restructuring. We have also trimmed our price target to $320, below the current share price of $345. Given the downside implied by our target price and what we believe will be a challenging macro environment, we are downgrading ELV shares to Hold from Buy. We believe 2026 should be characterized as a year of transition and execution for ELV. Management expects commercial performance will remain strong on solid fee-based membership growth from national accounts wins and renewed pricing, which already accounted for higher trend levels. For the ACA business, membership is expected to decline sharply as the enhanced subsidies will likely expire."

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 $344.60 yesterday.

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