Leerink Partners analyst Whit Mayo downgraded the rating on Elevance Health to a Hold today, setting a price target of $310.00.
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Whit Mayo has given his Hold rating due to a combination of factors impacting Elevance Health’s outlook. One significant reason is the lack of visible earnings growth projected for 2026, which suggests limited potential for the company’s stock to appreciate significantly in the near term. Additionally, there is no compelling investment case to improve sentiment or sector valuations, which further supports a cautious approach.
Moreover, Mayo highlights several risks that could affect Elevance Health’s business lines and products, including potential challenges in the healthcare sector that may worsen before improving. The company’s guidance for the second half of 2025 indicates a run-rate that requires substantial growth to meet revised earnings targets for 2026. Furthermore, sector-wide uncertainties, such as changes in Medicaid and other regulatory factors, add to the volatility and risk, prompting a more conservative valuation approach. Consequently, Mayo has adjusted the price target and valuation multiple, reflecting these headwinds and the overall market environment.
In another report released today, Bank of America Securities also maintained a Hold rating on the stock with a $350.00 price target.