In a report released today, Joanna Gajuk from Bank of America Securities reiterated a Hold rating on Humana (HUM – Research Report), with a price target of $260.00.
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Joanna Gajuk’s rating is based on Humana’s ongoing turnaround plan, which targets significant improvements by 2028. The company aims for an EPS of $36-43 by 2028, relying heavily on $4 billion in cost-cutting and margin improvement initiatives. However, these targets are considered aggressive, especially given the current lower revenue base and uncertainties surrounding the Medicare Advantage (MA) Stars ratings and rates beyond 2027.
Another factor influencing the Hold rating is the expectation that Humana’s EPS for 2026 will be lower year-over-year, aligning with the firm’s model. While the company has outlined strategic plans for operational leverage and growth in various segments, including CenterWell and Medicaid, the success of these initiatives remains to be seen. The price objective has been adjusted to $260, reflecting a cautious stance as the market awaits more clarity on the execution of Humana’s margin turnaround plan.
Gajuk covers the Healthcare sector, focusing on stocks such as UnitedHealth, Chemed, and HCA Healthcare. According to TipRanks, Gajuk has an average return of -0.5% and a 55.21% success rate on recommended stocks.
In another report released on June 12, Barclays also maintained a Hold rating on the stock with a $268.00 price target.