Wells Fargo Cuts Elevance (ELV) Price Target on Margin Uncertainty
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Wells Fargo stated that the primary driver of the reduced value multiple was uncertainty regarding margins in the Medicaid, Medicare Advantage (MA), and Health Insurance Exchange (HIX) segments for 2025.
The firm also pointed out that there was 'relatively low visibility to improvement in 2026,' especially in the Medicaid and Health Insurance Exchange segments. However, it insisted that Elevance's valuation 'remains compelling once dust settles on estimates.'
Elevance Health, Inc. (NYSE:ELV), previously Anthem, Inc., is a leading health-benefits provider in the United States. The company offers medical, pharmaceutical, dental, long-term care, disability, and behavioral health insurance under numerous brands, including Anthem Blue Cross, Blue Shield, Wellpoint, and Carelon.
While we acknowledge the potential of ELV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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