Analyst Steve Baxter of Wells Fargo maintained a Buy rating on Centene (CNC – Research Report), with a price target of $90.00.
Steve Baxter has assigned a Buy rating to Centene’s stock due to a combination of factors indicating strong company performance and promising projections. The company’s fourth-quarter results aligned with Wells Fargo’s estimations, showing robust earnings bolstered by favorable outcomes in exchanges, net investment income (NII), and controlled selling, general, and administrative expenses (SG&A), which compensated for higher-than-anticipated Medicare medical loss ratios (MLR). Additionally, Centene’s raised premium revenue guidance for 2024, reflecting confidence in sustained commercial growth, while maintaining its earnings per share (EPS) projections.
Baxter’s optimism is further supported by Centene’s revenue growth, which surpassed expectations, with total revenue showing a significant year-over-year increase. The Medicaid segment, in particular, outperformed estimates in both revenue and membership counts, despite a membership decline. Moreover, the Commercial business delivered impressive year-over-year revenue growth and a favorable MLR compared to estimates. These positive trends, along with the company’s ability to navigate pressures in the Medicare segment, provide a strong rationale for Baxter’s Buy rating on Centene’s stock.
Baxter covers the Healthcare sector, focusing on stocks such as Humana, Cigna, and UnitedHealth. According to TipRanks, Baxter has an average return of 0.5% and a 49.58% success rate on recommended stocks.
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Centene (CNC) Company Description:
Centene Corporation is a diversified healthcare company that primarily engages in providing programs and services to the government sponsored healthcare programs. The company is also engaged in providing education and outreach programs to assist members in accessing quality and appropriate healthcare services.
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