On July 14, Elevance Health rose 5.25% in pre-market trading, trading at $442.15/share, with turnover of $334,800. The rally came as multiple Wall Street firms issued bullish price target revisions just ahead of the company's Q2 earnings release scheduled for July 15.
On the news front, Wells Fargo significantly raised its price target from $391 to $492 while maintaining an Overweight rating; Truist lifted its target to $475, keeping a Buy rating; and Bernstein raised its target to $482, maintaining an Outperform rating. The FactSet consensus target price has climbed to approximately $439. Market consensus expects Q2 revenue of $48.714 billion, representing 0.99% year-over-year growth, with adjusted EPS of $6.20.
The broader healthcare insurance sector is approaching a critical test as Elevance, UnitedHealth, and CVS Health report Q2 results sequentially. Goldman Sachs noted that underwriting conditions for managed care companies are improving. Elevance delivered a strong Q1 beat with adjusted EPS of $12.58 versus the $10.79 estimate, and management reaffirmed full-year adjusted EPS guidance of at least $26.75.
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