BHG - Citi downgrades Centene Bright Health in light of ACA exchange marketplace

Citi is downgrading Centene (NYSE:CNC) and Bright Health Group (NYSE:BHG) to neutral from overweight as more companies enter the ACA exchange marketplace. Analyst Ralph Giacobbe says that although the marketplace represents a relatively small part of the insured population, it can be more important to some insurers than others. "With companies entering/expanding next year we see a more competitive backdrop and have some concerns around 'land grab', with premium decreases in 2022 in the face of higher cost trend and lower margin seen thus far in 2021," he writes. Giacobbe remains on the sidelines of the two companies looking for more clarity for next year. Read more about Centene's recently reported Q3 2021 earnings results.

For further details see:

Citi downgrades Centene, Bright Health in light of ACA exchange marketplace