Key Highlights:
- Centene's revenue surged 20% year-over-year, surpassing forecasts.
- Despite revenue growth, shares dipped due to raised medical expense forecasts.
- Analysts maintain a positive outlook with significant potential upside.
Centene Corporation (CNC, Financial) continues to show impressive financial performance, reporting a substantial 20% increase in Q1 2025 revenue, totaling $48.6 billion. This surge exceeded Wall Street expectations by an impressive $5.4 billion. Despite this strong revenue growth, CNC shares experienced a decline after the company announced raised forecasts for medical expenses. The health benefits ratio edged up slightly to 87.5%, indicating higher costs. On a positive note, adjusted earnings per share saw a remarkable 28% rise, reaching $2.90.
Wall Street Analyst Predictions
According to projections from 16 financial analysts, the average price target for Centene Corp (CNC, Financial) stands at $79.00, with the highest estimate reaching $93.00 and the lowest at $64.00. This average target suggests a potential 40.00% upside from the current stock price of $56.43. Investors seeking more detailed estimate data can visit the Centene Corp (CNC) Forecast page.
Reflecting confidence among experts, the consensus recommendation from 20 brokerage firms positions Centene Corp (CNC, Financial) with an average brokerage recommendation of 2.4, indicating an "Outperform" status. This rating operates on a scale from 1 to 5, where 1 signifies a Strong Buy and 5 indicates a Sell.
As per GuruFocus estimates, the projected GF Value for Centene Corp (CNC, Financial) in one year is $94.19. This suggests a potential upside of 66.91% from the current price of $56.43. The GF Value, calculated by GuruFocus, represents the fair value at which the stock should trade, based on historical trading multiples, past business growth, and future performance estimates. Investors can access more comprehensive data on the Centene Corp (CNC) Summary page.
