Cantor, Mizuho see margin recovery for health insurers over next few years

Humana

20/05/2026 13:30

** Mizuho raises PTs on US health insurers CVS CVS.N, Centene CNC.N, Elevance ELV.N, Humana HUM.N and UnitedHealth UNH.N, saying 2026 should mark the start of margin recovery after a difficult three-year cycle

** Adds, "these companies have sufficient reserve buffers to absorb potential cost trend volatility without revising guidance"

** Brokerage Cantor Fitzgerald echoes the view but expects margins to improve by 2028 after a weak pricing period

** It adds, "Our 2028 estimates and assumptions show reasonable paths to margin recovery across multiple insurance lines that, in our view, warrant interest back in the stocks"

** The brokerage points to Centene as a potential recovery name, saying the stock could "materially appreciate" if margins return to historical levels

** ELV up 1.11%, CNC up 2.06%, and HUM up 1.59% premarket

** As of last close, CVS up 18.7%, CNC up 43.7%, ELV up 14.8%, HUM up 21.3% and UNH up 17.9% YTD

     PT changes from Mizuho:

Company
New PT
Old PT
CVS
$110
$102
CNC
$58
$50
ELV
$435
$385
HUM
$335
$290
UNH
$440
$410

(Reporting by Kunal Das in Bengaluru)

((Kunal.Das2@thomsonreuters.com;))