Centene Corp

CNC: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$46.00	Npwzxk	Vthvhcyb

Reducing Our Centene Fair Value Estimate Moderately After Another Contract Loss

Julie Utterback

Dec 23, 2022

The Department of Defense announced its Tricare contract awards for military service members, retirees, and their families, and while Centene has not commented yet, the company appears to have lost out to a competitor in the West region. At first glance, we are cutting our fair value estimate by a high-single digit percentage on this loss, which comes on top of recent county losses in California's Medicaid market to another competitor. While we do not think Centene has lost its narrow economic moat, these mounting contract losses suggest that the company will probably not reach its previously stated 2024 earnings goal.

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