In a report released today, Steven Halper from Cantor Fitzgerald reiterated a Buy rating on Anthem Inc (ANTM), with a price target of $330. The company’s shares opened today at $296.25, close to its 52-week high of $297.23.
Halper wrote:
“. We reiterate our Overweight rating on Anthem shares and increase our price target to $330 from $305. We recently hosted an investor trip to Anthem’s headquarters in Indianapolis with senior management. During our meetings, management stressed that it will use $3.2 billion from its PBM savings beginning in 2020 and 2021 to drive membership growth in subsequent years. Accordingly, we have increased our top-line growth assumptions in our DCF model, which drove our price target higher. Importantly, we expect membership and revenue to grow faster without sacrificing margins. We remind investors that our model had already assumed $800 million of savings in 2020 and 2021.”
According to TipRanks.com, Halper is a top 25 analyst with an average return of 22.4% and a 72.3% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.
Currently, the analyst consensus on Anthem Inc is a Strong Buy with an average price target of $319.33, a 7.8% upside from current levels. In a report released today, Jefferies also reiterated a Buy rating on the stock with a $345 price target.
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The company has a one-year high of $297.23 and a one-year low of $215.52. Currently, Anthem Inc has an average volume of 1.34M.
Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is negative on the stock.
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Anthem, Inc. provides life, hospital and medical insurance plans. It offers a broad spectrum of network-based managed care health benefit plans to the large and small employer, individual, Medicaid, and Medicare markets. The company operates through two segments: Commercial & Specialty Business, Government Business and Other.
