Jefferies downgraded Centene (CNC) to Underperform from Hold with a price target of $52, down from $68. After analysis of Affordable Care Act Exchange data, the firm sees potential for “Redetermination 2.0” as the Centers for Medicare and Medicaid Services tightens oversight and enhanced subsidies expire. Health insurance exchange market growth should be under “intense” enrollment and margin pressure as “overenrollment” is cleansed from the rolls, the analyst tells investors in a research note. The firm cites these concerns for the downgrade of Centene.
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Read More on CNC:
- CEO killing, rage over insurance pushes UnitedHealth into crisis, Bloomberg says
- Centene put volume heavy and directionally bearish
- Insurers collected billions in premiums from Medicare for veterans, WSJ says
- CMS raises MA star ratings for UnitedHealthcare, Centene, MH reports
- RBC sees little cause for concern over CMS’ proposed part D GLP-1 coverage rule
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