
Centene (CNC) Stock Forecast & Price Target
Centene (CNC) Analyst Ratings
Bulls say
Centene demonstrated a solid financial position with a Medicaid Health Benefit Ratio (HBR) of 93.4%, reflecting a year-over-year improvement, and the company anticipates continued enhancements in rate structures which contribute to approximately 50% of annualized premium revenue. Additionally, Centene's Medicare membership reached 1.01 million, aligning with expectations, while the Pharmacy Drug Plan (PDP) membership of 7.97 million exceeded projections, indicating robust demand in its service offerings. The company's composite rate improvement forecast of approximately 5.5% and a sequential improvement in Medical Loss Ratio (MLR) highlight effective management strategies and a strong outlook for future performance.
Bears say
Centene's financial outlook appears negative due to an anticipated decline in the percentage of its portfolio in low-cost Silver positions, projected to decrease to 42% in 2026 from 55% in 2025, indicating potential revenue challenges. Additionally, the company faces a substantial expected earnings impact of around $2.4 billion pre-tax for FY25, attributed to lower-than-expected risk adjustment figures, which has the potential to further strain financial stability. Finally, the risks associated with deteriorating marketplace risk scores, persistent pressure on Medicaid margins, and uncertainties surrounding the Part D business contribute to an overall pessimistic view of Centene's future performance.
This aggregate rating is based on analysts' research of Centene and is not a guaranteed prediction by Public.com or investment advice.
Centene (CNC) Analyst Forecast & Price Prediction
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