Morgan Stanley Downgrades Centene Corporation (CNC) to Equal Weight From Overweight

Centene Corporation (NYSE:CNC) is one of the best cheap stocks with huge upside potential. On July 10, Morgan Stanley downgraded Centene Corporation (NYSE:CNC) to Equal Weight from Overweight, bringing the price target down to $33 from $70.

The firm told investors in a research note that unexpected near-term challenges are currently outweighing the long-term upside levers that were referenced in the firm’s initiation. It also cited Health Insurance Exchange and Medicaid pressure.

Morgan Stanley further said that the latest preannouncement by Centene Corporation (NYSE:CNC) underscored increased utilization in its Medicaid book, while also highlighting that the MA Prescription Drug and Medicare Advantage Plans performed better than expected in Q2.

Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides programs and services to government-sponsored healthcare programs. The company’s operations are divided into the following segments: Medicaid, Medicare, Commercial, and Other.

While we acknowledge the potential of CNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.