Centene Corp's stock has dropped 7.26%, hitting a 5-day low, as the market reacts to proposed changes in Medicare Advantage payment rates.
The Trump administration's proposal for a mere 0.09% net average payment increase for Medicare Advantage plans in 2027 has fallen significantly short of analysts' expectations of 4% to 6%. This has led to substantial declines in shares of major health companies, including Centene Corp, as investors express concerns over the potential impact on profitability and future investments in the sector. The proposed changes are expected to weaken insurers' financial positions, which is reflected in the current market sentiment.
This decline in Centene's stock highlights the sensitivity of health insurers to regulatory changes and payment policies. As the market digests the implications of the proposed payment rates, investors will be closely monitoring how these changes may affect Centene's operational strategies and overall market position.
Wall Street analysts forecast CNC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNC is 43.07 USD with a low forecast of 32.00 USD and a high forecast of 59.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast CNC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNC is 43.07 USD with a low forecast of 32.00 USD and a high forecast of 59.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
8 Hold
2 Sell
Hold
Current: 41.900
Low
32.00
Averages
43.07
High
59.00
Current: 41.900
Low
32.00
Averages
43.07
High
59.00
Mizuho
Neutral
maintain
$40 -> $47
2026-01-09
Reason
Mizuho
Price Target
$40 -> $47
AI Analysis
2026-01-09
maintain
Neutral
Reason
Mizuho raised the firm's price target on Centene to $47 from $40 and keeps a Neutral rating on the shares. The firm updated targets in the healthcare facilities and managed care group as part of a Q4 preview. Mizuho's physician survey indicated healthcare utilization growth trends decelerated sequentially despite easier year-over-year comps, which could indicate trend is peaking, the analyst tells investors in a research note.
Wells Fargo
Equal Weight
maintain
$35 -> $43
2026-01-07
Reason
Wells Fargo
Price Target
$35 -> $43
2026-01-07
maintain
Equal Weight
Reason
Wells Fargo raised the firm's price target on Centene to $43 from $35 and keeps an Equal Weight rating on the shares. For managed care organizations, the firm is most constructive on Medicare Advantage with uncertainty high for Medicaid/Exchanges. Wells sees a more difficult backdrop for hospitals in 2026 as post-COVID tailwinds wane and legislative risks near. Distributor debate remains revisions vs. multiples.
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Bernstein
Lance Wilkes
Outperform
maintain
$45 -> $59
2026-01-06
Reason
Bernstein
Lance Wilkes
Price Target
$45 -> $59
2026-01-06
maintain
Outperform
Reason
Bernstein analyst Lance Wilkes raised the firm's price target on Centene to $59 from $45 and keeps an Outperform rating on the shares. The firm sees a sector turnaround in the government managed care organization sector beginning in 2026, but expects to see bumps in the recovery. Bernstein believes all MCO sectors present attractive entry points, with Medicare Advantage likely to see the nearest term earnings improvements and Medicaid representing the most attractive valuations.
Truist
Buy
downgrade
$47 -> $45
2026-01-05
Reason
Truist
Price Target
$47 -> $45
2026-01-05
downgrade
Buy
Reason
Truist lowered the firm's price target on Centene to $45 from $47 and keeps a Buy rating on the shares. While there remains uncertainty around Enhanced Advance Premium Tax Credits, expectations around an extension resolution are low, and the firm's estimates assume meaningful membership contraction in Marketplace in 2026 across its coverage universe, the analyst tells investors in a research note. Truist sees an attractive Medicare margin recovery opportunity in both Individual and Group given what a conservative utilization assumptions dialed into pricing following several years of strong trend, the attractive MA rate update, and the companies' focus on margin over growth aided by targeted initiatives including benefit adjustments, pricing and footprint rationalization.
About CNC
Centene Corporation is a healthcare company. The Company provides fully integrated services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Its segments include Medicaid, Medicare, Commercial and Other. Specifically, the Medicaid segment includes the Temporary Assistance for Needy Families (TANF) program, Medicaid Expansion programs, the Aged, Blind or Disabled (ABD) program, the Children's Health Insurance Program (CHIP), Long-Term Services and Supports (LTSS), Foster Care, Medicare-Medicaid Plans (MMP), which cover beneficiaries who are dually eligible for Medicaid and Medicare and other state-based programs. The Medicare segment includes Medicare Advantage, Medicare Supplement, Dual Eligible Special Needs Plans and Medicare Prescription Drug Plans. The Commercial segment includes the Health Insurance Marketplace product along with individual, small group, and large group commercial health insurance products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
