Morgan Stanley thinks it’s time to buy Elevance Health stock. The bank listed the stock as a top performer in a note on Tuesday and reiterated its overweight rating. Morgan Stanley’s $585 price target implies a roughly 24% upside from Monday’s close of $471.16. Morgan Stanley analyst Michael Ha said the health insurer can shine in the broader managed care space, forecasting up to 15% earnings per share growth next year. ELV YTD mountain shares of Elevance Health are down more than 8% so far this year. “Overall, we are positive about Elevance as the cleanest story in Managed Care, with the quality of their long-term fundamental growth story improving significantly over the past year due to attractive idiosyncratic and undervalued LT earnings growth drivers,” said Ha. Meanwhile, the analyst added that Elevance will also benefit from higher commercial prices in the sector, which he forecast could add up to 175 basis points of margin improvement by 2024. “With early signs pointing to a strong industry-wide commercial pricing environment for 2024 (suggesting potential LDD price increases) AND after a year of disciplined commercial revaluation, we believe next year’s disciplined commercial revaluation rate of 202 will benefit from disciplined commercial revaluation. environment (with less risk of losing ELV membership given the firming of prices across the industry),” he said. — CNBC’s Michael Bloom contributed to this report.