Morgan Stanley Sees 8.8% EPS CAGR for Centene (NYSE:CNC), Initiates Coverage with $70 target.

Centene Corporation (NYSE:CNC) is one of the 8 cheap beginner stocks to buy right now. On June 9, Morgan Stanley analysts began covering Centene Corporation (NYSE:CNC) with an Overweight rating and a $70 price target. The analysts emphasized Centene’s status as a prominent managed care provider, particularly within the Medicare Advantage, Medicaid, and Individual Exchange programs.

Centene’s robust footprint in the Medicaid market is a significant asset, the analysts pointed out, despite the program’s difficulties, which include financing instability and state rate-member acuity mismatch. In order to support long-term growth, they also highlighted possible expansion prospects in the ICHRA market and D-SNP integration.

Morgan Stanley also highlighted the possibility of ongoing cost reductions along with faster growth in better margin categories, which might eventually result in margin increase. The firm predicts that over the next three years, these elements combined with capital deployment will sustain an EPS compound annual growth rate of 8.8%.

Centene Corporation (NYSE:CNC), headquartered in St. Louis, Missouri, is a managed care company that serves as a middleman between government-sponsored and privately insured healthcare programs.

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.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.