Barclays Lowers Price Target for Elevance Health to $327, Maintains Overweight Rating

Barclays has lowered its price target for Elevance Health (ELV) from $358 to $327, a decrease of 8.66%, while maintaining an "Overweight" rating. The updated price target reflects Barclays' latest assessment of ELV's market performance and future prospects. Despite the lowered price target, the "Overweight" rating indicates that the stock is still expected to outperform.

Barclays analyst Andrew Mok has revised the price target for Elevance Health (ELV) from $358 to $327, a decrease of 8.66%, while maintaining an "Overweight" rating. The updated price target reflects Barclays' latest assessment of ELV's market performance and future prospects. Despite the lowered price target, the "Overweight" rating indicates that the stock is still expected to outperform.

The revision comes in response to the company's second-quarter earnings results. Elevance Health reported a 14% year-over-year increase in operating revenue, reaching $49.4 billion, driven by higher premium yields and recent acquisitions. The company delivered adjusted EPS consistent with expectations, reflecting strength in the Medicare Advantage portfolio and disciplined cost management. CarelonRx and Carelon services showed strong performance, with CarelonRx growing operating revenue by over 20% and Carelon services delivering more than 50% growth in revenue [1].

However, Elevance Health also faced challenges. The company revised its full-year 2025 adjusted EPS guidance to approximately $30, reflecting pressures from elevated medical cost trends in ACA and slower Medicaid rate alignment. The company experienced a sequential decline in medical membership, down approximately 200,000, primarily due to reductions in Medicaid membership and lower effectuation rates in the ACA business. The consolidated benefit expense ratio increased by 260 basis points year-over-year, driven by ACA and Medicaid businesses [1].

Barclays' price target adjustment reflects a reassessment of Elevance Health's business model following the release of the latest financial performance data. Despite the lowered price target, the "Overweight" rating indicates that the stock is still expected to outperform. This is supported by the consensus recommendation from 24 brokerage firms, which currently averages a "2.2" rating, indicating an "Outperform" status [1].

References:

[1] https://www.gurufocus.com/news/2992322/barclays-adjusts-elevance-health-elv-price-target-after-earnings-report-elv-stock-news
[2] https://www.tipranks.com/news/the-fly/elevance-health-price-target-lowered-to-327-from-358-at-barclays-thefly