Baird Reduces PT on Elevance Health (ELV) Stock, Maintains Neutral

Elevance Health, Inc. (NYSE:ELV) is one of the Most Undervalued Long Term Stocks to Buy According to Hedge Funds. On July 25, Baird analyst Michael Ha reduced the price target on the company’s stock to $297 from $492, while keeping a “Neutral” rating, as reported by The Fly. This comes as part of an update on the managed care and healthcare facilities group. Notably, the firm remains increasingly cautious on Medicaid and the healthcare exchange. While the external environment has been evolving, Elevance Health, Inc. (NYSE:ELV) remains focused on managing healthcare costs, deploying targeted investments in advanced technology and value-based care delivery, and reinforcing the operational foundation, which helps the long-term value creation.

A medical professional working at a computer, utilizing the company’s digital solutions to improve care quality for consumers.

Elevance Health, Inc. (NYSE:ELV)’s operating revenue came in at $49.4 billion in Q2 2025, reflecting a rise of $6.2 billion, or 14% compared to Q2 2024. This was because of increased premium yields in its Health Benefits segment, recently closed acquisitions, as well as growth in the Medicare Advantage membership, partially mitigated by the membership attrition in the Medicaid business. As a result of the embedded earnings power of Elevance Health, Inc. (NYSE:ELV)’s diversified Health Benefits and Carelon businesses, it expects to achieve a minimum of 12% average annual growth in adjusted diluted EPS over time.

Hotchkis & Wiley, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Elevance Health, Inc. (NYSE:ELV), formerly known as Anthem, is a large health insurer, and the largest commercial health insurer. ELV is priced at a discount to the market; however, we believe it is a superior business, growing faster than gross domestic product while still returning most of its cash to shareholders. ELV reported earnings that were in line with consensus. Costs remain elevated but ELV reported signs of stabilization in Medicaid utilization trends. Management also provided guidance for stable Medicare Advantage margins in 2025. Overall, this was a positive quarter for ELV as commercial performance remains strong and it showed signs of normalization for utilization and cost trends.”

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Disclosure: None. This article is originally published at Insider Monkey.