Centene

Wells Fargo analyst Stephen Baxter maintains Centene (NYSE:CNC) with a Equal-Weight and raises the price target from $71 to $74.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target price by $1 to $76, reflecting an 11.4x multiple of our 2024 EPS estimate (down by $0.02 to $6.68), a small discount to CNC’s five-year forward average of 11.8x. We raise our 2023 EPS forecast by $0.09 to $6.60. CNC reported Q3 adjusted EPS of $2.00 vs. $1.30, far above the $1.52 consensus forecast. Revenue of $38.0B rose 6.1% Y/Y, with the Marketplace business rising to over 3.6M members vs. 2.1M as of the prior-year quarter. The health benefits ratio (HBR) of 87.0% was in line with Q2 and down from 88.3% in Q3 2022, reflecting Marketplace growth (a lower HBR segment). With ongoing effects from redetermination, total Medicaid membership fell 2.9% Y/Y, though CNC left its guidance unchanged for a 10%-15%

Centene (NYSE:CNC) reported Q2 adjusted earnings Friday of $2.10 per diluted share, up from $1.77 per share a year earlier. Analysts polled by Capital IQ estimated adjusted EPS of $2.05. Revenue for the quarter ended June 30 was $37.61 billion, compared with $35.94 billion a year earlier. Analysts surveyed by Capital IQ expected $36.54 billion. The company said it expects 2023 adjusted EPS of at least $6.45, up from the previous outlook of $6.40. Analysts polled by Capital IQ expect adjusted EPS of $6.47. Revenue for the year is projected to be $147.3 billion to $149.3 billion, compared with the prior guidance of $144.5 billion to $146.5 billion. Analysts polled by Capital IQ expect $146.43 billion.

Stephens & Co. analyst Scott Fidel reiterates Centene (NYSE:CNC) with a Overweight and maintains $87 price target.