Argus Research Downgrades Elevance Health to Hold, Sets New Price Target.

Argus Research downgraded Elevance Health (ELV) to 'Hold' from 'Buy', citing no specific price target change. The decision reflects a reevaluation of expectations on the stock's performance. The average target price for ELV is $413.44, with a high estimate of $556.33 and a low estimate of $310.00, indicating a potential upside of 49.21%.

Argus Research has downgraded Elevance Health Inc (ELV) from a "Buy" rating to a "Hold" rating, reflecting a reevaluation of the company's financial outlook. The decision comes amidst a challenging environment for the healthcare sector, marked by elevated medical costs, regulatory pressures, and uncertain policy changes.

The average target price for ELV is currently $413.44, with a high estimate of $556.33 and a low estimate of $310.00, indicating a potential upside of 49.21% [3]. Despite the downgrade, several analysts maintain a positive outlook on Elevance Health's potential for earnings stability and growth in certain segments.

Elevance Health's President and CEO, Gail Boudreaux, recently purchased shares of the company's stock totaling $2.4 million, indicating a level of confidence in the company's future despite the current market conditions [1]. The insider buying did not prevent Argus Research from expressing caution about the company's ability to navigate the volatile healthcare landscape.

The downgrade follows a series of adjustments and evaluations following Elevance's second-quarter earnings report. The company reported earnings per share of $8.84, a 12.6% decline year-over-year and $0.14 below consensus estimates. This prompted several analysts to lower their price targets and ratings. Guggenheim, for instance, reduced its price target to $360 while maintaining a Buy rating, citing cost pressures in Medicaid and the Health Insurance Exchange market [2].

Elevance Health's full-year 2025 earnings per share guidance was also revised downward to $30, down from its previous range of $34.15 to $34.85. This reduction in guidance reflects the company's struggle with elevated medical cost trends and slower Medicaid rate alignment. The sector-wide challenges, including membership losses and reimbursement pressures, have led to a significant decline in the stock's valuation. Since April, more than $300 billion in market capitalization has been wiped out from the healthcare sector [3].

Despite these challenges, Elevance Health continues to explore growth opportunities, particularly in Medicare Advantage and value-based care. The company's expansion into these segments could potentially offset some of the current pressures. However, the road ahead remains uncertain, and investors are advised to closely monitor the company's performance and policy developments.

References:
[1] https://m.au.investing.com/news/insider-trading-news/elevance-health-ceo-boudreaux-buys-24-million-in-stock-93CH-3933316?ampMode=1
[2] https://www.gurufocus.com/news/2987632/elevance-health-elv-target-price-reduced-amid-earnings-guidance-concerns-elv-stock-news
[3] https://www.gurufocus.com/news/2986997/barclays-adjusts-elevance-health-elv-price-target-after-q2-results-elv-stock-news