BofA Downgrades Elevance Health On Medicaid Pressure And Lowered Peer Valuations
Portfolio Pulse from Vandana Singh
BofA downgraded Elevance Health (ELV) due to Medicaid pressure and lower peer valuations. ELV's Q2 revenue was $43.2 billion, slightly above consensus but down 0.4% YoY. Medicaid attrition and higher premium yields were noted. BofA lowered ELV's price target from $646 to $530 and downgraded it to Neutral. Other analysts had mixed reactions.
July 18, 2024 | 6:50 pm
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NEGATIVE IMPACT
BofA downgraded Elevance Health to Neutral from Buy, citing Medicaid pressure and lower peer valuations. Q2 revenue was $43.2 billion, slightly above consensus but down 0.4% YoY. BofA lowered the price target from $646 to $530.
The downgrade and reduced price target from BofA, along with concerns about Medicaid pressure, are likely to negatively impact ELV's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
UnitedHealth Group reported increasing pressure on Medicaid, similar to Elevance Health. This creates uncertainty about Medicaid margins and potential recovery.
Medicaid pressure and uncertainty about margins could negatively impact UNH's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
NEUTRAL IMPACT
Cigna Corp is trading at a lower valuation compared to Elevance Health. Medicaid pressure and valuation concerns are noted.
While CI is trading at a lower valuation, the overall Medicaid pressure may have a neutral impact on its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30
NEUTRAL IMPACT
Centene Inc. is trading at a lower valuation compared to Elevance Health. Medicaid pressure and valuation concerns are noted.
While CNC is trading at a lower valuation, the overall Medicaid pressure may have a neutral impact on its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30
NEUTRAL IMPACT
Molina Healthcare Inc. is trading at a lower valuation compared to Elevance Health. Medicaid pressure and valuation concerns are noted.
While MOH is trading at a lower valuation, the overall Medicaid pressure may have a neutral impact on its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30