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Elevance Health’s Strong Q1 2025 Performance and Diverse Revenue Streams Justify Buy Rating

In a report released on April 22, Stephen Baxter from Wells Fargo maintained a Buy rating on Elevance Health (ELVResearch Report), with a price target of $478.00.

Stephen Baxter’s rating is based on Elevance Health’s strong financial performance in the first quarter of 2025, which exceeded previous expectations. The company’s adjusted earnings per share (EPS) of $11.97 were consistent with preannouncements and surpassed both Wells Fargo Securities and consensus estimates. Additionally, Elevance Health’s operating revenue showed a significant year-over-year increase of 15.4%, outperforming the estimates.
Furthermore, the company’s diverse revenue streams, including CarelonRx and Carelon Services, demonstrated robust growth. CarelonRx revenue increased by 25.4% year-over-year, while Carelon Services revenue surged by 63.0%. These positive financial metrics, coupled with a reaffirmation of 2025 guidance, underpin Baxter’s confidence in the company’s future performance, justifying the Buy rating.

In another report released on April 23, Barclays also maintained a Buy rating on the stock with a $522.00 price target.

ELV’s price has also changed slightly for the past six months – from $419.840 to $415.900, which is a -0.94% drop .

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