Deutsche Bank Raises Centene (CNC) PT to $39 While Maintaining Hold Rating

Centene Corporation (NYSE:CNC) is one of the best stocks under $50 to invest in. On February 10, Deutsche Bank raised its price target for Centene from $32 to $39 while keeping a Hold rating on the shares. The firm noted that the shares had previously been caught in a downward trend affecting its industry peers.

Earlier on February 6, Centene Corporation reported its Q4 2025 earnings report, where the company’s diluted loss totaled $1.19 per share, though full-year adjusted EPS of $2.08 slightly exceeded expectations. Total premium and service revenue for 2025 reached $174.6 billion, supported by a Medicaid membership of 12.5 million and a year-end medical claims liability of $20.5 billion.

Looking ahead to 2026, Centene issued revenue guidance of $170 to $174 billion and expects adjusted EPS to grow by over 40% to more than $3. Management anticipates meaningful margin recovery in the ACA marketplace, where membership is projected to hit 3.5 million, and continues to move toward a breakeven point in Medicare Advantage. Despite a projected 5% to 6% decline in Medicaid membership and pressure on 2027 Medicare rates, the firm expressed confidence in its 2026 outlook.

Centene Corporation operates as a healthcare enterprise that provides programs and services to underinsured & uninsured families and commercial organizations in the US.

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This article is originally published at Insider Monkey.