ELV Stock Forecast & Price Target

Elevance Health, serving 46 million medical members and being the largest single provider of Blue Cross Blue Shield coverage in 14 states, demonstrates a robust market presence in the health insurance sector. The company's strategic focus on expanding value-based care initiatives, targeting 80% of consolidated medical spend in these arrangements by 2027, is projected to drive significant top-line and bottom-line growth. Furthermore, the anticipated favorable trends in adjusted earnings per share (EPS) for fiscal year 2025, bolstered by improved Medicare Advantage cost trends and quicker adjustments to Medicaid rates, further contribute to a positive outlook for Elevance Health's stock.

Elevance Health's outlook is negatively impacted by projected earnings per share (EPS) for fiscal year 2025, which are expected to be approximately 10% lower than earlier estimates due to delays in Medicaid rate updates and increased costs linked to Part D changes. Additionally, Medicaid utilization is decreasing at a slower pace than anticipated by management, further contributing to concerns about growth. The company's target valuation multiple is trending downward, reflecting the prevailing uncertainty regarding its near-term EPS growth prospects for 2025.