Sanford C. Bernstein Increases Centene (NYSE:CNC) Price Target to $68.00

Key Points

• Sanford C. Bernstein raised its price target on Centene to $68 (from $48) and maintained an "outperform" rating, implying roughly a 24.9% upside from current levels.
• Centene beat Q1 estimates with EPS $3.37 versus $2.23 and revenue of $49.94 billion (up 7.1% year-over-year), though it reported a negative net margin of 3.25%.
• Analyst coverage is mixed: the consensus rating is "Hold" with an average target of $53.82 (six Buys, eleven Holds, two Sells), and the stock trades around $54.44.

Centene (NYSE:CNC - Get Free Report) had its target price hoisted by stock analysts at Sanford C. Bernstein from $48.00 to $68.00 in a note issued to investors on Tuesday,MarketScreener reports. The brokerage currently has an "outperform" rating on the stock. Sanford C. Bernstein's target price would suggest a potential upside of 24.92% from the company's current price.

CNC has been the subject of several other reports. JPMorgan Chase & Co. decreased their price objective on shares of Centene from $45.00 to $41.00 and set a "neutral" rating for the company in a research note on Thursday, March 19th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Centene from $39.00 to $53.00 and gave the stock a "hold" rating in a report on Wednesday, April 29th. Wells Fargo & Company upped their price target on shares of Centene from $44.00 to $56.00 and gave the company an "equal weight" rating in a report on Friday. Mizuho increased their price target on Centene from $41.00 to $50.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Finally, UBS Group boosted their price objective on Centene from $42.00 to $55.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Six equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Centene has an average rating of "Hold" and a consensus target price of $53.82.

Centene Price Performance

Shares of NYSE CNC opened at $54.44 on Tuesday. The company has a market capitalization of $26.88 billion, a PE ratio of -4.14, a PEG ratio of 1.03 and a beta of 1.06. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.76. The stock's 50 day moving average price is $38.91 and its 200-day moving average price is $39.49. Centene has a twelve month low of $25.08 and a twelve month high of $64.15.

Centene (NYSE:CNC - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The company reported $3.37 EPS for the quarter, topping analysts' consensus estimates of $2.23 by $1.14. Centene had a positive return on equity of 5.57% and a negative net margin of 3.25%.The business had revenue of $49.94 billion for the quarter, compared to analyst estimates of $47.53 billion. During the same period last year, the company posted $2.90 earnings per share. Centene's quarterly revenue was up 7.1% compared to the same quarter last year. On average, equities analysts anticipate that Centene will post 3.46 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. UniSuper Management Pty Ltd grew its stake in shares of Centene by 66.0% during the 3rd quarter. UniSuper Management Pty Ltd now owns 85,232 shares of the company's stock worth $3,041,000 after purchasing an additional 33,875 shares during the period. Oracle Investment Management Inc. purchased a new position in Centene in the third quarter valued at about $3,936,000. Packer & Co Ltd purchased a new stake in shares of Centene during the 3rd quarter worth approximately $50,487,000. First Citizens Bank & Trust Co. increased its stake in Centene by 122.5% in the 3rd quarter. First Citizens Bank & Trust Co. now owns 223,157 shares of the company's stock valued at $7,962,000 after purchasing an additional 122,870 shares in the last quarter. Finally, ARGA Investment Management LP acquired a new stake in Centene in the third quarter valued at $21,485,000. Institutional investors and hedge funds own 93.63% of the company's stock.

About Centene

Centene Corporation NYSE: CNC is a diversified, multi-national healthcare enterprise that specializes in providing services to government-sponsored and national health programs. The company primarily acts as a managed care organization, delivering healthcare coverage and administering benefits for Medicaid, the Children's Health Insurance Program (CHIP), Medicare Advantage, and individual marketplace plans. Centene also contracts with federal and state agencies to manage specialty care programs and community-based services for vulnerable populations.

Centene's offerings extend beyond traditional insurance to include a range of specialty and support services.

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