Analyst Gary Taylor of TD Cowen maintained a Buy rating on Centene (CNC – Research Report), with a price target of $91.00.
Gary Taylor has given his Buy rating for Centene’s stock (CNC) due to a combination of factors including financial projections and market dynamics. He has factored in higher revenues from the Health Insurance Marketplace (HIX) with a lower medical loss ratio (MLR) and a higher margin profile extending into 2024. Additionally, he has made slight adjustments to the Medicaid (MDCD) and Medicare Advantage (MA) MLRs and accounted for the company maintaining its market share in key states such as Florida, Georgia, and Texas for the year 2025.
Taylor’s expectations for 2025 are conservative, viewing it as a transition year with growth rates potentially below the long-term target of 12-15% in earnings per share (EPS), given no improvement in MA Stars ratings and the impact of full redetermination losses. Despite these factors, he has increased the price target for Centene from $84 to $91, shifting the 12.5x price-to-earnings (P/E) target from 2024 to 2025, reflecting a positive outlook on the company’s earnings potential and stock valuation. His analysis suggests confidence in Centene’s financial health and market position, underpinning his Buy recommendation.
Taylor covers the Healthcare sector, focusing on stocks such as Acadia Healthcare, Centene, and Cigna. According to TipRanks, Taylor has an average return of -1.3% and a 52.14% success rate on recommended stocks.
In another report released on February 7, Jefferies also maintained a Buy rating on the stock with a $94.00 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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