BUZZ-Cantor, Mizuho see margin recovery for health insurers over next few years
CVS Health Corporation CVS | 0.00 | |
Humana Inc. HUM | 0.00 | |
Centene Corporation CNC | 0.00 | |
UnitedHealth Group Incorporated UNH | 0.00 | |
Elevance Health ELV | 0.00 |
** Mizuho raises PTs on US health insurers CVS CVS.N, Centene CNC.N, Elevance ELV.N, Humana HUM.N and UnitedHealth UNH.N, saying 2026 should mark the start of margin recovery after a difficult three-year cycle
** Adds, "these companies have sufficient reserve buffers to absorb potential cost trend volatility without revising guidance"
** Brokerage Cantor Fitzgerald echoes the view but expects margins to improve by 2028 after a weak pricing period
** It adds, "Our 2028 estimates and assumptions show reasonable paths to margin recovery across multiple insurance lines that, in our view, warrant interest back in the stocks"
** The brokerage points to Centene as a potential recovery name, saying the stock could "materially appreciate" if margins return to historical levels
** ELV up 1.11%, CNC up 2.06%, and HUM up 1.59% premarket
** As of last close, CVS up 18.7%, CNC up 43.7%, ELV up 14.8%, HUM up 21.3% and UNH up 17.9% YTD
PT changes from Mizuho:
Company |
New PT |
Old PT |
CVS |
$110 |
$102 |
CNC |
$58 |
$50 |
ELV |
$435 |
$385 |
HUM |
$335 |
$290 |
UNH |
$440 |
$410 |