JPMorgan upgraded Centene (CNC) to Overweight from Neutral with a price target of $75, down from $80, after assuming coverage of the name. Entering 2025, the firm is “cautiously optimistic” that Medicaid rate updates can narrow the disconnect between rates and utilization and acuity. On the Affordable Care Act exchanges, the analyst sees enhanced advance premium tax credit expiration as likely driving potential headwinds to managed care originations with varying impact. JPMorgan views Centene’s valuation as attractive and believes it incorporates a pessimistic view of the impact of ACA subsidy expiration in 2026.
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