12:47 PM EDT, 07/28/2025 (MT Newswires) -- Elevance Health's ( ELV ) earnings can rebound in 2026 as margins stabilize and core business segments contribute to performance, UBS said in a note on Monday.

The firm noted that Elevance recently lowered its 2025 earnings guidance by $4.50, primarily due to a 90-basis-point increase in its medical loss ratio, which implies $1.43 billion in added medical costs.

"Given where the company is exiting 2025 there appears to be a pathway towards a $30 to $34 starting point for 2026 EPS," the analysts said in the note.

UBS projects EPS could rise to $33.50 in 2026, supported by gains from commercial risk and ASO businesses.

UBS reiterated its buy rating on Elevance with a 12-month price target of $435.

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