Elevance Health stock to be down LDD on ‘perfect storm,’ says Baird

Elevance shares should be down low double digits today after the company reported the “perfect storm” of underperformance for Q3, an EPS miss, a 200 basis point medical loss ratio miss, and a significant 2024G EPS revision, with starting 2025 EPS growth expected to be at least mid single digits vs. 12%-15% long-term EPS growth, Baird tells investors in a research note. The firm says this is much worse than its base case scenario and it is “perplexed” by the sheer magnitude of the MLR miss, but views the messaging from management on 2025 Medicare Advantage as positive. Baird made no change to its Outperform rating or $625 price target on the shares.