Elevance Health stock: Wells Fargo raises target to USD 492

Published on 11/03/2026 at 13:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Elevance Health stock drew a more constructive Wells Fargo view after improving Medicaid and exchange trends. The bank kept an Overweight rating.

Analyst sees further earnings growth

Wells Fargo raised its 2026 earnings estimate above consensus after constructive Medicaid and exchange trends.
The bank sees additional earnings-per-share growth in 2027 and 2028 even without Medicaid support in 2027.
Elevance Health's third-quarter adjusted earnings and revenue exceeded consensus, supporting a higher full-year outlook.

Elevance Health, US0367521038, Illustration mit AI erstellt.

Wells Fargo raised its price target for Elevance Health on October 27, 2026, while retaining an Overweight rating. The bank cited constructive trends in Medicaid and health insurance exchanges after the insurer's third-quarter performance, according to Investing.com.

Wells Fargo lifted its 2026 earnings-per-share estimate by USD 2.00. The increase included USD 0.75 from stronger core performance, USD 1.85 from one-time valuation benefits and a USD 0.60 tax effect. The bank's resulting 2026 EPS estimate of USD 30.28 stood 4.5 percent above the USD 29.33 consensus estimate cited in the report.

Medicaid and exchange trends shape outlook

The analyst said upside in Medicaid and exchanges was beginning to flow through after positive intra-quarter commentary. Core earnings increased by USD 0.75, with Medicaid, Medicare Advantage and health insurance exchanges all described as trending positively.

The outlook extends beyond the current year. Wells Fargo projected EPS of USD 31.75 for 2027 and USD 39.40 for 2028, placing both estimates above consensus. The bank said solid EPS growth remained possible in 2027 even without support from Medicaid, which makes the forecast less dependent on one business line.

Wells Fargo based its revised target on a 12.5 times multiple applied to estimated 2028 EPS. Its scenario range ran from USD 369 under weaker Affordable Care Act and Medicaid margin assumptions to USD 586 under more favorable conditions and a higher valuation multiple. The range underscores the sensitivity of the valuation to health-plan margins and policy-linked business trends.

Quarterly results underpin revisions

Elevance Health's third-quarter results provided the backdrop for the analyst revision. Adjusted diluted EPS reached USD 6.99, compared with a USD 4.70 consensus estimate, while revenue came to USD 50.4 billion against a forecast of USD 49.32 billion. The company subsequently raised its full-year outlook, according to the Investing.com report.

Other analysts also lifted their targets after the earnings update. Bernstein moved to USD 520, BofA Securities to USD 500 and Guggenheim to USD 485, although these estimates remain dependent on future operating performance and market assumptions rather than guarantees of a share-price gain.

Elevance Health stock traded at 366.95 euros on Lang & Schwarz at 13:15 CET on Tuesday, November 3, 2026. Investors can follow the real-time quote of Elevance Health stock.

The main risks for the outlook remain the development of Medicaid and Affordable Care Act margins, the mix of Medicare Advantage membership and the effect of policy changes on health-plan economics. Wells Fargo's scenario range illustrates how quickly valuation assumptions can change if those operating trends weaken.