Centene Corporation’s Investor Day Review

Oppenheimer analysts provided a review on Centene Corporation (NYSE:CNC) following the company’s Investor Day, where it provided its fiscal 2023 guidance ($6.25-$6.40 vs Street’s estimate of $6.34), reaffirmed its prior 2024 comments and issued a long-term EPS growth target of 12-15%.

The company also discussed a range of operational initiatives, including the MA Stars/profits rebound, the robust ACA/exchanges growth trends and Medicaid re-determinations mitigation. Furthermore, management discussed how Washington should remain favorable as gridlock will likely prevail at the federal level with states taking the policy reins.

Post-investor day, Oppenheimer reiterated its 2022/2023/2024 EPS estimates of $5.75/$6.34/$7.27. With the company's long-term targets becoming increasingly tangible, analysts believe the stock looks highly compelling at current prices.