BUZZ-Evercore initiates coverage of Elevance Health, backs earnings outlook

Reuters04-08
BUZZ-<a href="https://laohu8.com/S/EVR">Evercore</a> initiates coverage of <a href="https://laohu8.com/S/ELV">Elevance Health</a>, backs earnings outlook

** 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;))

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