Centene ‘significantly’ undervalued, says Oppenheimer

Oppenheimer reiterated an Outperform rating and $110 price target on Centence after hosting meetings with the company at its headquarters. The firm came away from the meetings feeling confident that Medicaid rate discussions are progressing well and margins should ultimately return to historical levels. While the short-term timing pressures will continue into 2025, Oppenheimer believes the recovery to historical margins in the high-89% range is a matter of when, not if. The firm added that it believes Centene is “significantly” undervalued, and continues to see significant upside at current prices.