Mizuho Raises Elevance Health (ELV) PT to $413 Citing Peaking Healthcare Utilization Growth

Core Insights - Elevance Health Inc. (NYSE:ELV) is identified as a potentially undervalued stock within the S&P 500, with recent price target increases from analysts indicating positive sentiment towards the company [1][2]. Analyst Ratings and Price Targets - Mizuho analyst Ann Hynes raised the price target for Elevance Health to $413 from $400, maintaining an Outperform rating, while also noting a slowdown in healthcare utilization growth, suggesting a peak in recent healthcare demand [1][3]. - Wells Fargo increased its price target for Elevance Health to $424 from $403, maintaining an Overweight rating, with a focus on confidence in Medicare Advantage amidst uncertainties in Medicaid and health insurance exchanges [2]. Market Environment and Future Outlook - Mizuho anticipates a challenging environment for hospitals in 2026 as post-COVID tailwinds fade and legislative risks emerge, indicating potential headwinds for the healthcare sector [3]. - The ongoing debate regarding healthcare distributors revolves around whether performance will be influenced more by earnings revisions or valuation multiples, highlighting the complexities in the market [3]. Company Overview - Elevance Health operates as a health benefits company in the US, with four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other, indicating a diversified business model [4].