Truist Securities raised price targets on U.S. health insurers Centene (CNC), CVS Health (CVS), Elevance Health (ELV), Humana (HUM), Molina Healthcare (MOH) and UnitedHealth (UNH), while keeping ratings unchanged.
The brokerage reiterated "buy" ratings on Cigna (CI), CNC, CVS, ELV and UNH, and "hold" ratings on HUM and MOH.
Truist said the sector is "having several innings remaining of a longer-term earnings recovery opportunity across the government businesses".
The brokerage expects profits from government-backed plans to improve, supported by favorable 2027 Medicare rates and Medicaid margins likely bottoming in 2026 before recovering from 2027.
Truist also sees further growth in Affordable Care Act plans and manageable medical use, adding that insurers' 2026 cost and pricing forecasts appear conservative.
"We remain bullish on continued investment activity across the group in technology/automation/AI," Truist said.
The S&P 500 Managed Health Care Sub-Industry Index .SPLRCHMO has gained 32.03% year to date, according to LSEG data.
