Core Viewpoint - The stock prices of major U.S. health insurance companies declined following President Trump's announcement that he would meet with insurance companies in the coming weeks to negotiate lower prices [1][2]. Group 1: Market Reaction - Major health insurance stocks, including Humana (HUM), UnitedHealthcare (UNH), Cigna (CI), CVS Health (CVS), and Elevance Health (ELV), either retraced gains or fell further after Trump's comments [1][2]. - The decline in stock prices occurred after a news event where Trump announced pricing agreements with nine pharmaceutical companies [1][2]. Group 2: Trump's Statements - Trump indicated that he would convene large, wealthy insurance companies to persuade them to lower prices [3]. - He expressed optimism that a single discussion could lead to price reductions of 50%, 60%, or even 70%, suggesting that these companies have been highly profitable [4].

Upgrades - Keefe Bruyette upgraded Bain Capital Specialty Finance (BCSF) to Outperform from Market Perform with an unchanged price target of $16, citing attractive entry point for shares [2] - JPMorgan upgraded Paccar (PCAR) to Overweight from Neutral with a price target of $133, increased from $108, due to offsetting tariff-related headwinds following the latest Section 232 proclamation [3] - Wells Fargo upgraded Generac (GNRC) to Overweight from Equal Weight with a price target of $195, up from $186, highlighting a "near-free call option" on data center growth after recent share pullback [4] - Barclays upgraded Cummins (CMI) to Overweight from Equal Weight with a price target of $546, increased from $515, reflecting new emissions rules and reduced R&D expenses [5] - Citizens upgraded Stryker (SYK) to Outperform from Market Perform with a price target of $440, citing reasonable valuation at current share levels [5] Downgrades - Wedbush downgraded Lyft (LYFT) to Underperform from Neutral with a price target of $16, down from $20, due to risks from autonomous vehicle disruption in the U.S. ridesharing market [6] - JPMorgan downgraded Lockheed Martin (LMT) to Neutral from Overweight with a price target of $515, up from $465, based on out-year cash flow estimates being below consensus [6] - Raymond James downgraded Allegiant Travel (ALGT) to Outperform from Strong Buy with a price target of $98, up from $78, citing valuation concerns after recent share strength [6] - Deutsche Bank downgraded Elevance Health (ELV) to Hold from Buy with a price target of $320, down from $332, due to reduced estimates and challenging macro environment [6] - Williams Trading downgraded Birkenstock (BIRK) to Hold from Buy with a price target of $51, down from $75, following earnings report and lack of clarity from management [6]

Core Insights - Elevance Health, Inc. (NYSE:ELV) is recognized as one of the 12 Best Long Term US Stocks to Buy Now [1] - BofA has raised its price target for Elevance Health to $385 from $370, maintaining a Neutral rating, reflecting higher sector valuations [2] - The company's third-quarter results demonstrated steady execution, with the benefit expense ratio aligning with management's expectations [3] Financial Performance - Total operating revenue for the quarter reached $50.1 billion, marking a 12% year-over-year increase, driven by higher premium yields, recent acquisitions, and increased Medicare Advantage membership [5] - Management reaffirmed an adjusted EPS target of approximately $30 for 2025, viewing $27 as the appropriate earnings baseline after accounting for nonrecurring items [4] Strategic Focus - The company is prioritizing the integration of recent acquisitions and capital returns, with share repurchases being a key focus area [4]

Core Viewpoint - Elevance Health, Inc. (NYSE:ELV) is considered a strong investment opportunity, with analysts projecting significant upside potential based on recent evaluations and financial performance [1][2][3]. Group 1: Analyst Recommendations - Seth Klarman holds a $426 million stake in Elevance Health as of Q3 2025, with an average price target suggesting a 10% upside and a Street high indicating an 18% upside [1]. - TD Cowen analyst Ryan Langston reiterated a Buy recommendation and raised the target price from $380 to $400, naming Elevance Health as its "Best Idea for 2026" despite challenges in the managed care sector [2]. - TD Cowen's EPS estimate for Elevance Health was lifted to $27.25, indicating a 12.7x multiple of the 2027 EPS projection [3]. Group 2: Financial Performance - Elevance Health reported Q3 2025 operating revenue of $50.1 billion, reflecting a 12% year-over-year increase [5]. - The diluted EPS for Q3 stood at $5.32, with adjusted diluted EPS at $6.03, driven by robust growth in premiums and higher net investment income [5]. - The growth was partially offset by a decline in overall medical enrollment due to Medicaid re-verification and rising cost pressures [5]. Group 3: Risk/Reward Profile - Elevance Health is noted to have a more balanced risk/reward profile compared to other managed care companies, attributed to its stable group health plan and careful estimates regarding Medicare Advantage and Medicaid [4].

Core Insights - Elevance Health is evolving its health plans to better support members through a broader range of health situations, including cancer, mental health, and pregnancy-related concerns [1][3][13] - The company emphasizes a whole-health approach that integrates physical, behavioral, and social factors affecting health [4][12] Group 1: Health Plan Evolution - Today's health plans are expanding beyond traditional medical and physical health metrics to include preventive care, chronic disease management, and behavioral health integration [3][4] - Elevance Health's affiliated Medicare Advantage and Medicaid plans provide support for individual health and social needs, including funds for nutritious food and transportation services [5][12] Group 2: Simplifying Healthcare Experience - The company aims to simplify the healthcare experience for members and providers through accessible resources like the Sydney app [6][13] - Care coordination and personalized solutions are enhanced through programs like the Community Pharmacy Total Care (CPTC), which connects members with independent pharmacists [7][9] Group 3: Community Engagement - Elevance Health invests in community relationships to support whole health, leveraging data to address local health needs [12][13] - Initiatives include partnerships with schools for food pantries and community gardens for nutrition education, demonstrating a commitment to both individual and community health [12][13] Group 4: Personalized Support - Care managers play a crucial role in helping members navigate the healthcare system, providing personalized assistance and addressing individual needs [10][11] - The company has received recognition for its person-centered approach, particularly in Medicaid plans that offer long-term services and supports [10][14]

Core Viewpoint - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of "a+" (Excellent) for the core Blue Cross Blue Shield (BCBS)-branded insurance subsidiaries of Elevance Health, Inc. [1] Group 1 - The FSR has been upgraded to A (Excellent) from A- (Excellent) for Elevance Health's subsidiaries [1] - The Long-Term ICR has also been upgraded to "a+" (Excellent) [1] - The ratings apply to most of Elevance's non-Blue-branded subsidiaries as well [1]

This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Dive Brief: Elevance has added a former Pfizer executive to its board, the latest addition of pharmaceutical industry veteran as the insurer focuses on building its pharmacy services. Amy Schulman will start as an independent director of Elevance effective Jan. 12, the insurer announced Wednesday. Schulman will serve on the board’s audit and finance committ ...

Core Viewpoint - Elevance Health has appointed Amy Schulman as an independent director, effective January 12, 2026, to enhance its board's expertise in healthcare innovation and governance [1][2][3]. Group 1: Appointment Details - Amy Schulman will serve on the Audit and Finance Committees, bringing extensive experience in healthcare innovation and regulatory strategy [1][3]. - Schulman is currently the Managing Partner at Polaris Partners, managing over $4 billion in healthcare and technology investments [3]. Group 2: Board Strategy - The appointment is part of Elevance Health's board refreshment strategy aimed at ensuring diverse and independent leadership aligned with long-term company goals [2][4]. - The board's refreshment process is central to Elevance Health's mission of improving health outcomes while delivering sustainable, long-term value [4]. Group 3: Company Overview - Elevance Health serves 109 million consumers through a diverse portfolio of medical, pharmacy, behavioral, clinical, home health, and complex care solutions [4].

Group 1 - Elevance Health, Inc. (NYSE:ELV) is considered a cheap healthcare stock with a median price target of $394, indicating an upside potential of 19.12% [1] - TD Cowen raised the price target for Elevance Health to $400 from $380, maintaining a 'Buy' rating and highlighting it as their "Best Idea for 2026" [2] - Mizuho reduced its price target for Elevance Health to $400 from $420 while keeping an 'Outperform' rating, also lowering earnings guidance for 2026 and 2027 due to challenges in Carelon [3] Group 2 - Elevance Health operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other, and aims to simplify the healthcare system [4]

Core Viewpoint - Elevance Health has expanded access to its Virtual Assistant, a digital tool aimed at enhancing member engagement and simplifying healthcare navigation [1] Group 1: Product Features - The Virtual Assistant is designed to help members easily access information, understand their benefits, and find care with confidence [1] - It is available through the Sydney Health app and Elevance Health-affiliated health plan websites [1] - The technology utilizes conversational interfaces to improve member interaction with their health plans [1]