In a report released on April 18, Ann Hynes from Mizuho Securities maintained a Buy rating on Elevance Health (ELV – Research Report), with a price target of $575.00.
Ann Hynes’s rating is based on a robust financial performance and strategic positioning of Elevance Health (ELV). The company’s first-quarter earnings surpassed both Mizuho Securities’ estimates and the consensus, which was largely attributed to favorable non-operating items. A noteworthy aspect of ELV’s performance was the Medical Loss Ratio (MLR), which came in below consensus and showed year-over-year improvement due to premium rate adjustments. Additionally, the company’s operational efficiency was evident in the raised earnings guidance and the growth in operating profit, which exceeded consensus expectations. ELV’s effective management of its Health Benefits business was highlighted by an increase in operating margin year-over-year.
Moreover, Elevance Health’s strategic initiatives are promising, such as their expansion into primary care delivery through a partnership with Clayton, Dubilier & Rice. Despite challenges like the Change Healthcare cybersecurity incident, ELV demonstrated resilience with normalized claim receipts post-incident. The company’s adept handling of Medicaid membership changes and a balanced approach to Medicare Advantage bids further reinforce confidence in its operational acumen. These factors, combined with the quarter’s solid execution and margin goals achievement in the health benefits segment, provide a strong rationale for the Buy rating.
According to TipRanks, Hynes is a 5-star analyst with an average return of 7.1% and a 59.75% success rate. Hynes covers the Healthcare sector, focusing on stocks such as Cigna, Humana, and Elevance Health.
In another report released on April 19, Barclays also maintained a Buy rating on the stock with a $621.00 price target.
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Elevance Health (ELV) Company Description:
Indiana-based Anthem, Inc. was formed in 2004 after the merger of WellPoint Health Networks Inc. and Anthem, Inc. The company is one of the leading health insurance names, and provides medical benefits through a range of integrated healthcare plans and related services, along with a wide range of specialty products such as life and disability insurance benefits, dental, vision, behavioral health benefit services, as well as long-term care insurance and flexible spending accounts.
Read More on ELV:
- Elevance Health price target raised to $600 from $580 at Truist
- Elevance Health price target raised to $575 from $574 at RBC Capital
- Elevance Health price target raised to $600 from $557 at Wells Fargo
- Elevance Health price target raised to $605 from $585 at UBS
- Elevance Health price target raised to $621 from $584 at Barclays
