Wall Street Sees an 18% Upside to Elevance Health (ELV)

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].