The price target cut comes after the Indianapolis-based health insurer reported 2015 fourth quarter earnings on Wednesday, which missed analysts' earnings per share expectations.
While 2016 guidance was reaffirmed and earnings per share matched the pre-announcement, the update was a net negative, according to Jefferies.
"Commercial margins were surprisingly low driven by the exchanges' failure to thrive. Management has adjusted the G&A load, but the individual profitability will remain below target. Lower exchange membership challenges the 2018 revenue target," the firm said in an analyst note.
Shares of Anthem closed down by 3.67% to $126.42 on heavy trading volume on Thursday.
About 3.2 million of the company's shares were traded by this afternoon, well above its average volume of 1.7 million shares per day.
Separately, TheStreet Ratings Team has a "buy" rating with a score of A- on the stock.
This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that the team rates.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and notable return on equity.
The team feels its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ANTM