Elevance Health Inc. shares fell 6.72% and hit a 5-day low as major health insurers reacted negatively to recent Medicare payment policy updates.
The Centers for Medicare & Medicaid Services (CMS) proposed a mere 0.09% payment growth for Medicare Advantage in 2027, which translates to over $700 million in additional payments. This announcement has led to significant declines in shares of major health insurers, including Elevance Health, reflecting market unease regarding future profitability in the sector. The proposed updates to the risk adjustment model and drug plan adjustments further exacerbate concerns about operational strategies for insurers.
The implications of these developments suggest a challenging environment for Elevance Health and its peers, as the proposed payment increases are seen as insufficient to support profitability. Investors may need to reassess their positions in light of these policy changes.
Wall Street analysts forecast ELV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ELV is 392.07 USD with a low forecast of 320.00 USD and a high forecast of 431.00 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 ELV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ELV is 392.07 USD with a low forecast of 320.00 USD and a high forecast of 431.00 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.
11 Buy
4 Hold
0 Sell
Moderate Buy
Current: 341.850
Low
320.00
Averages
392.07
High
431.00
Current: 341.850
Low
320.00
Averages
392.07
High
431.00
Guggenheim
Jason Cassorla
Buy
maintain
$398 -> $414
2026-01-22
Reason
Guggenheim
Jason Cassorla
Price Target
$398 -> $414
AI Analysis
2026-01-22
maintain
Buy
Reason
Guggenheim analyst Jason Cassorla raised the firm's price target on Elevance Health to $414 from $398 and keeps a Buy rating on the shares. Intra-quarter management commentary, a pre-quiet period catch-up with the company, and investor conversations point to "a solid setup for 2026 expectations," the analyst says.
Mizuho
Ann Hynes
Outperform
maintain
$400 -> $413
2026-01-09
Reason
Mizuho
Ann Hynes
Price Target
$400 -> $413
2026-01-09
maintain
Outperform
Reason
Mizuho analyst Ann Hynes raised the firm's price target on Elevance Health to $413 from $400 and keeps an Outperform 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.
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Wolfe Research
Justin Lake
Peer Perform
to
Outperform
upgrade
$425
2026-01-08
Reason
Wolfe Research
Justin Lake
Price Target
$425
2026-01-08
upgrade
Peer Perform
to
Outperform
Reason
Wolfe Research analyst Justin Lake upgraded Elevance Health to Outperform from Peer Perform with a $425 price target. The firm is "increasingly confident" in the company's near-term upside opportunities, first in Medicare Advantage in 2026, then with the healthcare exchanges in 2027. Wolfe believes improving investor sentiment will drive upside in the shares.
Wells Fargo
Overweight
maintain
$403 -> $424
2026-01-07
Reason
Wells Fargo
Price Target
$403 -> $424
2026-01-07
maintain
Overweight
Reason
Wells Fargo raised the firm's price target on Elevance Health to $424 from $403 and keeps an Overweight 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.
About ELV
Elevance Health, Inc. is a health company. It operates as a health insurer in the United States. The Company operates through four segments: Health Benefits, CarelonRx, Carelon Services and Corporate & Other. The Health Benefits segment offers a comprehensive suite of health plans and services to its Individual, Employer Group risk-based, Employer Group fee-based, BlueCard, Medicare, Medicaid and Federal Employee Program (FEP) members. The Health Benefits segment also offers health products on a full-risk basis. The CarelonRx segment includes its pharmacy services business. CarelonRx markets and offers pharmacy services to its affiliated health plan customers, as well as to external customers outside of the health plans. The Carelon Services segment integrates physical, behavioral, pharmacy, and social services by offering an array of healthcare-related services and capabilities to internal and external customers through its Carelon Health and Carelon Insights businesses.
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.
