Centene price target lowered to $77 from $81 at JPMorgan

JPMorgan analyst Calvin Sternick lowered the firm’s price target on Centene to $77 from $81 and keeps a Neutral rating on the shares. The analyst thinks the Q2 earnings reports will provide some clarity on whether higher Medicare Advantage utilization is a company-specific or industry-wide issue and will help investors assess potential earnings exposure in 2023 and 2024. The firm believes the combination of Medicare Advantage cost trend uncertainty and the election cycle limits near-term upside for the managed care group. It lowered target multiples across the group.