Elevance Health price target lowered to $520 from $620 at Truist

Truist lowered the firm’s price target on Elevance Health (ELV) to $520 from $620 but keeps a Buy rating on the shares. The company’s Q3 results were marked by higher medical loss ratio, but while its lower FY24 guide and initial FY25 outlook tied to continued Medicaid rate and acuity mismatch pressure were disappointing, the management’s long-term targets across segments were reaffirmed along with the 12% adjusted EPS CAGR, the analyst tells investors in a research note. The rate/acuity mismatch should correct over time, and Truist remains bullish on Elevance’s core trends at Carelon and its cross-sell opportunity with Health Benefits, the firm added.