Guggenheim Starts Elevance (ELV) at Buy

Guggenheim analyst Jason Cassorla initiates coverage on Elevance (NYSE: ELV) with a Buy rating and a price target of $518.00.

The analyst comments: "ELV's leverage of BCBS brand, diversification effectively across all end-markets, size and dominance (particularly in commercial + Medicaid), and budding services organization (Carelon) position the company well = defensible position to mitigate headwinds + the ability to drive favorable earnings growth. Near-term margin headwinds reflect Medicaid rate/acuity mix pressures, gov't mix shift, and acquisitions, offset by SG&A leverage / efficiencies; we view headwinds as 'cyclical' via pressures within price-taking businesses (Medicaid + MA to a degree), and see ELV's longer-term growth profile still intact. Capital deployment & further optionality on MA + services aids upside potential to >$12 long-term EPS growth target. All combined with attractive valuation, we initiate on ELV with Buy Rating."

For an analyst ratings summary and ratings history on Elevance click here. For more ratings news on Elevance click here.

Shares of Elevance closed at $430.90 yesterday.

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