Morgan Stanley analyst Erin Wright has maintained their neutral stance on HUM stock, giving a Hold rating today.
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Erin Wright has given his Hold rating due to a combination of factors that reflect both opportunities and uncertainties for Humana. The company’s medium-term guidance suggests a promising increase in earnings per share by 2028, surpassing current consensus estimates. This projection is supported by anticipated growth in individual Medicare Advantage earnings, contributions from growth businesses, and significant enterprise operating leverage.
However, despite these positive indicators, there are notable challenges that temper the outlook. The ongoing uncertainty surrounding the Stars litigation and competitive dynamics in the Medicare Advantage space present potential risks. Additionally, while the company aims to improve profitability through operating leverage and margin expansion, these efforts are contingent on overcoming existing hurdles. As such, the Hold rating reflects a balanced view of Humana’s potential for growth against the backdrop of these uncertainties.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $260.00 price target.