Elevance Health's 2026 Earnings Expected to Recover on Stabilizing Medicaid and Core Growth, UBS Says

MT Newswires Live
29 Jul

Elevance Health's earnings can rebound in 2026 as margins stabilize and core business segments contribute to performance, UBS said in a note on Monday.

The firm noted that Elevance recently lowered its 2025 earnings guidance by $4.50, primarily due to a 90-basis-point increase in its medical loss ratio, which implies $1.43 billion in added medical costs.

"Given where the company is exiting 2025 there appears to be a pathway towards a $30 to $34 starting point for 2026 EPS," the analysts said in the note.

UBS projects EPS could rise to $33.50 in 2026, supported by gains from commercial risk and ASO businesses.

UBS reiterated its buy rating on Elevance with a 12-month price target of $435.

Price: 286.33, Change: -2.77, Percent Change: -0.96

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