Jefferies analyst David Windley has maintained their bullish stance on CNC stock, giving a Buy rating today.
David Windley has given his Buy rating due to a combination of factors that suggest an optimistic future for Centene’s stock. The analyst recognizes a clear improvement trajectory for Centene, with potential for margin expansion and positive momentum in Medicaid and Health Insurance Marketplace (HIX) membership. Despite a higher than expected Medical Loss Ratio (MLR) for Medicare in the fourth quarter, Windley sees this as a controlled situation that could benefit future quality ratings. Additionally, the projection for 2025 earnings per share supports a favorable valuation, underpinning the $94 price target.
The report also indicates that Centene’s story may have been previously perceived as overly complex, which could be changing as clearer margin expansion becomes visible. With Medicaid MLRs nearing their peak, stability in membership, and potential improvements in Florida, Centene could be set for a better performance in the near future. The HIX market is expected to align with target margins, and even Medicare, despite being the most challenging segment, has room for margin improvement. Moreover, Windley favors Centene over its peer Molina Healthcare (MOH), citing a significant price discount and the prospect of a catch-up trade as investor confidence in Medicaid exposure grows.
In another report released today, Oppenheimer also maintained a Buy rating on the stock with a $110.00 price target.
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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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