
Centene (CNC) Stock Forecast & Price Target
Centene (CNC) Analyst Ratings
Bulls say
Centene's managed care organization demonstrated strong financial metrics with a Medicaid HBR improvement to 93.4%, reflecting a favorable year-over-year increase and providing solid visibility into nearly half of the annualized premium revenue from future rate adjustments. The company's Medicare membership reached 1.01 million, aligning with expectations, while the Medicare Part D membership of 7.97 million surpassed previous projections, indicating robust demand in this segment. Additionally, Centene expects a composite rate improvement of approximately 5.5%, driven by favorable cohort performance, which positions the company well for enhanced revenue growth moving forward.
Bears say
Centene's stock outlook is negatively influenced by expected reductions in their portfolio's low-cost Silver positions, which are projected to decrease from 55% in 2025 to 42% in 2026, indicating potential challenges in profitability. The company anticipates a significant pre-tax earnings impact of approximately $2.4 billion due to risk adjustments, with projections running $1.8 billion to $2.75 billion lower than previously guided, raising concerns about future earnings stability. Furthermore, ongoing pressure on Medicaid margins and adverse trends in marketplace risk scores could exacerbate financial challenges, further contributing to investor caution as evidenced by the notable market loss ratio miss from a competitor.
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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