11:56 AM EDT, 06/04/2024 (MT Newswires) -- Elevance Health's ( ELV ) earnings-per-share growth outlook of 15% to 17% through 2027 is "easily achievable" amid commercial repricing, recent deals involving its Carelon business, and pharmacy benefit manager insourcing, BofA Securities said in a Tuesday note.

The investment firm said it expects commercial repricing to be a major catalyst for earnings growth in the near term, to drive 32% of enterprise earnings growth from 2022 to 2027 while 16% is estimated to come from commercial enrollment and cost trend growth. Insourcing specialty and CarelonRx mail order also serve as major tailwinds in the near term, BofA Securities added.

Sustaining the 12% growth in 2028 and beyond will require share gains in the company's health benefits business or Carelon's significant external growth, BofA Securities said, noting that Elevance Health ( ELV ) continues to have a number of avenues with upside potential.

"Using somewhat conservative assumptions, Elevance Health ( ELV ) should return 20% over the next year, with a path to consistent additional low teens annual returns from there," BofA Securities said.

BofA Securities raised its price objective for Elevance Health ( ELV ) stock to $646, from $621 previously, while maintaining a buy rating.

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