Barclays Downgrades Centene (CNC) on Policy Risk, Cuts Price Target to $65

On June 2, an analyst from Barclays downgraded Centene Corporation’s (NYSE:CNC) rating from Overweight to Equal-Weight and lowered its price target from $84 to $65.

The downgrade follows Centene’s first-quarter results and concerns about its exposure to Medicare Part D* and Affordable Care Act (ACA) markets. The analyst points to challenges in Centene’s Part D mix, shifts in the ACA individual market, and early indications of 2026 ACA premium rates as growing risks. He expects earnings pressure to persist through 2025, with additional hurdles in 2026 from pricing challenges and market disruptions.

A doctor holding a clipboard talking to an elderly patient in a Medicare Advantage healthcare facility.

The analyst also notes that Centene may face greater investor scrutiny due to limited near-term growth drivers in managed care and reduced opportunities for valuation expansion. In this environment, earnings revisions may play a larger role in shaping investor sentiment, with downside risks potentially outweighing any potential gains.

While Centene’s broad portfolio remains solid in the long run, the analyst sees the stock’s near-term risk-reward balance as less appealing due to ongoing policy and pricing uncertainties.

*Medicare Part D is the prescription drug coverage available to anyone enrolled in Medicare. It helps cover the cost of prescription drugs, including many recommended vaccinations.

Centene Corporation (NYSE:CNC) is a leading managed care organization focused on government-sponsored healthcare programs, including Medicaid, Medicare, and ACA Marketplace plans.

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