On Monday, TD Cowen revised its price target on shares of Elevance (NYSE:ELV), bringing it down to $484 from $589, while retaining a Buy rating on the stock. The adjustment follows the company's third-quarter earnings report for 2024.
The firm's analyst cited updates to their financial model after reviewing Elevance's 3Q24 earnings per share (EPS) results. In response to the data, the analyst has also revised the 2025 EPS estimate for Elevance down to $34.90, which represents a year-over-year growth of 6%. This estimate aligns with the guidance provided by Elevance's management, which projects at least mid-single-digit growth.
Despite the reduced EPS forecast and lower price target, the firm's analyst reaffirms the Buy rating for Elevance. The new 12-month price target of $484 reflects the updated expectations while continuing to signal confidence in the stock's potential.
Elevance's recent earnings report and the subsequent model update by TD Cowen have prompted a reassessment of the stock's future performance. The new price target and EPS estimates are now set to reflect the latest financial results and projections for the coming year.
InvestingPro Insights
While TD Cowen has adjusted its price target for Elevance (NYSE:ELV), recent InvestingPro data provides additional context to the company's financial position. Despite the lowered EPS forecast, Elevance maintains a solid market capitalization of $99.91 billion, underscoring its significant presence in the Healthcare Providers & Services industry.
InvestingPro Tips highlight that Elevance has been aggressively buying back shares, which could potentially support the stock price. Additionally, the company has raised its dividend for 14 consecutive years, demonstrating a commitment to shareholder returns that aligns with the analyst's maintained Buy rating.
The current P/E ratio of 15.71, lower than the adjusted P/E of 13.58 for the last twelve months as of Q3 2024, suggests the stock might be attractively valued relative to its earnings. This could provide support for TD Cowen's optimistic outlook, despite the lowered price target.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide valuable insights into Elevance's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.