Morgan Stanley Says Elevance Health's Growth Attributed To Consistent Performance But Undervalued
Portfolio Pulse from Vandana Singh
Morgan Stanley has initiated coverage on Elevance Health Inc (NYSE:ELV) with an Overweight rating and a price target of $643, citing its diversified portfolio and undervaluation. Despite challenges in Medicare Advantage, Elevance's resilience and growth potential in segments like Pharmacy Benefit Management and Carelon Services are highlighted. Elevance's shares have risen 13.3% year-to-date, trading at a P/E ratio of 13.6 times, slightly below its diversified peers.
June 24, 2024 | 5:45 pm
News sentiment analysis
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NEUTRAL IMPACT
UnitedHealth Group is mentioned as the industry leader with a higher 10-year NTM average P/E ratio of 18.0 times compared to Elevance Health. This comparison highlights Elevance's undervaluation and potential for growth.
While UnitedHealth Group is mentioned for comparison, the primary focus of the article is on Elevance Health. Therefore, the short-term impact on UNH is likely neutral.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Morgan Stanley has initiated coverage on Elevance Health with an Overweight rating and a price target of $643. The analyst highlights Elevance's diversified portfolio and growth potential in segments like Pharmacy Benefit Management and Carelon Services. Despite challenges in Medicare Advantage, Elevance's resilience is noted.
Morgan Stanley's positive rating and higher price target are likely to boost investor confidence in Elevance Health. The company's diversified portfolio and growth potential in various segments support a positive short-term impact on its stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100