Centene (CNC) Faces Major Selloff, Mizuho Cuts Price Target Sharply to $40

Centene Corp. (NYSE:CNC) is one of the most oversold S&P 500 stocks so far in 2025. On July 2, Centene’s share price plunged 40% after the company withdrew its 2025 earnings guidance. Following the data presented by an independent actuarial firm, Wakely, the company anticipated a significant impact on its growth and EPS estimates; consequently, the market reacted negatively.

Analyst activity has been largely negative, with rating downgrades issued by BofA, Morgan Stanley, and Piper Sandler. On July 11, Mizuho analyst Ann Hynes revised her price target on Centene, cutting it significantly from $71 to $40, while maintaining a Neutral rating on the stock. The update comes as part of Mizuho’s Q2 earnings preview for the healthcare sector.

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

According to Hynes, near-term earnings visibility appears stronger for hospital operators, whereas managed care companies, such as Centene, continue to face pressure from unfavourable cost trends. She points to rising medical costs as a key concern that could weigh on margins and limit upside in the near term.

As part of the research, Mizuho also conducted a survey of 215 physicians. The results, Hynes notes, support a more constructive outlook for hospitals, are largely neutral for clinical laboratories, and lean neutral to negative for the managed care segment.

Centene Corp. (NYSE:CNC) is a healthcare company that provides managed care services primarily through government-sponsored programs, including Medicaid and Medicare.

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