Elevance Health's (ELV) tone on the 2027 commercial pipeline was "constructive," RBC Capital Markets said in a note emailed Thursday.

Analysts said that the company's Q1 core performance beat expectations, supported by favorable Medicare claims experience, a better-than-anticipated adjusted operating expense ratio, and early traction with Medicaid cost actions.

RBC said it is still cautious on the stock as Elevance navigates an elevated Medicaid cost environment, ongoing Affordable Care Act risk-pool uncertainty, and 2027 Medicare Advantage rates, which continue to fall behind trend.

Analysts lowered their Q2 adjusted earnings per share estimate for the company to $6.14 from $6.64. Analysts polled by FactSet expect $6.38.

RBC, however, increased the full-year 2026 adjusted earnings per share estimate to $26.82 from $25.55. Analysts surveyed by FactSet expect $26.43.

Analysts maintained a sector perform rating on the stock and a $358 price target.

Price: 343.85, Change: +15.65, Percent Change: +4.77