03:05 PM EDT, 07/17/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $331 from $450, reflecting a 10.8x multiple of our 2026 EPS forecast, a discount to historical due to unfavorable medical cost trends. ELV reports Q2 EPS of $8.84 vs. $10.12, missing the S&P Capital IQ consensus view by $0.08. We slash our 2025 EPS estimate to $30.02 from $34.47 and keep 2026's at $30.53. Strong operating revenue growth in Q2 (+14.3% Y/Y) was offset by margin pressure from elevated medical costs. The benefit expense ratio rose a significant 260 bps Y/Y to 88.9% due to higher medical cost trends, particularly in the Medicaid business and ACA health plans. As a result, the operating margin contracted by 150 bps Y/Y to 4.9%. In response to the elevated medical cost trends and slower rate alignment in Medicaid, ELV lowered its 2025 adjusted EPS guidance to approximately $30.00, from a $34.15-$34.85 range in Q1. We expect the One Big Beautiful Bill Act to provide new challenges to the Medicaid business in the future, with approximately 19% of membership from Medicaid.