Mizuho's New Price Target#
Mizuho has raised its price target for Centene Corp. shares (NYSE:CNC) from $41 to $50 while keeping a Neutral rating on the stock. Currently, Centene shares are trading at approximately $49.57, reflecting a significant increase of 26.7% over the past week.
Strong Q1 Performance#
The adjustment in price target follows Centene’s first-quarter results for 2026, which exceeded expectations. The company reported an adjusted earnings per share (EPS) of $3.37, well above the forecasted $2.13. Additionally, Centene's revenue reached $49.94 billion, surpassing the anticipated $47.58 billion. This strong performance underscores the company's effective management and operational strategies.
Adjusted Earnings Estimates#
Mizuho has also revised its earnings estimates for Centene for the years 2026 to 2028, citing a better-than-expected medical loss ratio in the latest quarter. The company has increased its 2026 adjusted EPS guidance by 13%, although it has lowered the pre-tax margin for its health insurance exchange business to about 3%.
Potential Upside#
Mizuho notes that the current guidance does not factor in possible additional revenue from net payments related to exchange risk adjustments. Any positive revenue from these adjustments could enhance Centene's financial outlook, providing further upside to Mizuho’s estimates. Analysts believe that Centene's stock may still be undervalued based on its Fair Value assessment, with projected earnings of $3.05 per share for 2026.