Analyst Ryan Langston from TD Cowen maintained a Hold rating on Humana and decreased the price target to $260.00 from $268.00.
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Ryan Langston has given his Hold rating due to a combination of factors influencing Humana’s performance. Despite Humana surpassing the expected earnings per share for the second quarter of 2025 and raising its full-year adjusted EPS guidance, the company faces several uncertainties. These include the outcome of the re-filed 2026 Stars case and the results of the 2027 Stars ratings, which could impact future performance.
Additionally, while Humana’s CenterWell pharmacy and Medicare Advantage membership have shown strong performance, the company is experiencing medical cost trends that align with expectations. However, the lack of significant acceleration in trends and the procedural dismissal of the 2026 Stars lawsuit present potential challenges. These factors, combined with the company’s strategic focus on closing care gaps and improving quality, contribute to the Hold rating, reflecting a balanced view of potential risks and opportunities.
In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a $224.00 price target.