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Elevance Health cut to Hold at Argus on earnings pressure in 2024-2025

Elevance Health cut  to Hold at Argus on earnings pressure in 2024-2025

As previously reported, Argus downgraded Elevance Health (ELV) to Hold from Buy with no price target Given the headwinds of higher medical costs, the company’s profit margins in the Medicaid and Medicare Advantage businesses will be under pressure for the rest of 2024 and in 2025, though the firm would review look to upgrade the stock if it sees greater stability in medical costs/acuity and more favorable adjustments to Medicaid rates from the states, the analyst tells investors in a research note. Argus is also cutting its FY24 EPS view on Elevance to $33.00 from $37.30 and to $35.00 from $41.70 in FY25.

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