Analyst Note
| Julie Utterback, CFA |Centene turned in solid third-quarter results, and our 2021 expectations remain roughly in line with management's updated guidance. We are maintaining our $91 fair value estimate and think shares remain undervalued, closing on Oct. 25 at just 13 times 2021 expected earnings, with the potential to materially accelerate bottom-line growth in the intermediate term. We continue to see a narrow economic moat around Centene, which maintains strongholds in government-sponsored programs like its leading positions in Medicaid and the individual exchanges and a growing position in Medicare Advantage.