BofA Updates Managed Care Outlook, Raises Elevance Health (ELV) Price Target

Elevance Health, Inc. (NYSE:ELV) is included among the 15 Best Low Volatility Blue Chip Stocks to Buy Now.

On April 7, BofA lifted its price recommendation on Elevance Health, Inc. (NYSE:ELV) to $405 from $385. The firm kept a Neutral rating and lifted targets across several managed care names after CMS finalized Medicare Advantage rates for 2027. The analyst said the update provides clearer visibility on 2027 rates. The net increase of 2.48% came in above the high end of the 1% to 2% improvement the market had been expecting.

During the Q4 2025 earnings call, CEO Gail Boudreaux said 2026 would be a year focused on execution and repositioning. She explained that guidance is based on practical and achievable assumptions, supported by pricing discipline, operational focus, and targeted investments. She also shared adjusted diluted earnings per share guidance of at least $25.50 for 2026, noting that 2025 results included about $3.75 per share in favorable nonrecurring items.

Boudreaux also spoke about changes within the Medicaid portfolio. She pointed to a continued gap between rates and rising acuity and utilization. She said the company is engaged in discussions around rate actions and program design changes to improve the long-term sustainability of Medicaid. She described 2026 as a trough year for Medicaid and said the segment is expected to deliver an operating margin of about negative 1.75%.

Elevance Health, Inc. (NYSE:ELV) operates as a health insurer in the United States. The company runs its business through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other.

READ NEXT: 15 Cheapest Stocks with Highest Dividends and 15 Best Consistent Dividend Stocks to Buy Right Now

Disclosure: None. Follow Insider Monkey on Google News.