Centene (CNC) Stock Forecast & Price Target

Centene is positioned for a positive outlook due to anticipated margin expansions in its Medicaid and Medicare segments by 2025, alongside material growth in exchange and Medicare Part D enrollments. The company is projected to achieve a 5% increase in earnings per share (EPS) for 2025, with potential upside if rates renew more favorably than expected. Additionally, there is optimism regarding the resolution of regulatory uncertainties and improvements in Medicaid rates, which could enhance overall financial performance in the near term.

Centene's recent loss of a Georgia contract, valued at approximately $1.75 billion in revenue, is a significant factor contributing to its negative outlook, as it equates to a projected reduction of $0.02 in earnings per share (EPS) for 2025. The company faces additional headwinds from the challenges associated with Medicaid block grants and increased competition in its core markets, which could further compress revenue and earnings growth. Furthermore, projections indicate a potential cap on spending growth, which may limit Centene's ability to expand margins and result in a significant divergence from historical performance metrics.