Elevance Health price target lowered to $549 from $665 at Bernstein

Bernstein lowered the firm’s price target on Elevance Health (ELV) to $549 from $665 and keeps an Outperform rating on the shares. The firm notes Elevance reported Q3 results last week that missed on EPS by 13% and also lowered guidance for FY24. Bernstein points out that Elevance saw medial costs coming in at 3 to 5 times higher than historical averages. The company said states are in fact raising rates to historically higher levels in recognition of elevated acuity, but they are still not large enough to offset the spike in costs.