Centene downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Michael Ha downgraded Centene to Equal Weight from Overweight with a price target of $73, down from $94. The analyst has lowered confidence in the visibility and stability of the company’s long term earnings growth profile. The multi-year turnaround in Medicare Advantage Star Ratings and ability to re-procure future Medicaid wins are both becoming “increasing question marks” in Centene’s fundamental long-term growth story, the analyst tells investors in a research note. The firm sees lower earnings visibility into 2025 for the company and believes its valuation discount to peers is “reasonably justified.”