RBC Capital analyst Ben Hendrix initiated coverage of Centene Corporation with a Sector Perform rating and a $70 price target, stating the worst of 2025 is firmly in the rearview mirror. Hendrix noted Centene entered 2026 showing clear early signs of recovery after a brutal 2025 marked by soaring medical costs, Affordable Care Act subsidy uncertainty, and a difficult Medicaid environment that sent the stock to historic lows. He expects Medicaid margins to improve as state reimbursement rates catch up with actual medical costs, and views the ACA exchange margin outlook favorably due to pricing adjustments, even with a higher-cost membership base after enhanced subsidies expired. Hendrix also sees potential for 2026 earnings per share to exceed guidance if risk adjustment receivables remain stable.
Centene CorpAnalyst initiates coverage with positive outlook, citing recovery signs and potential EPS upside.