** Evercore ISI initiates coverage of health insurer Elevance Health ELV.N with an "in line" rating and PT of $345, implying an upside of around 10% from current levels
** Brokerage says ELV's diversified portfolio supports earnings in the current environment and expects the company to meet or exceed its 2026 guidance
** Warns of downside risk to Medicaid margins from 2027, as possible work requirements could reduce enrollment and leave a member base that requires more care adding to costs
** Estimates the downside risk to hit ELV's 2027 adjusted earnings forecast by 10%-30% if state reimbursement rates lag rising medical costs
** Over the longer term, Evercore sees scope for 12% or higher earnings growth, supported by Carelon, ELV's healthcare services arm, and cross-selling across ELV's insurance base
** As of last close, ELV shares down 11% YTD
(Reporting by Kunal Das in Bengaluru)
((Kunal.Das2@thomsonreuters.com;))
Comments