Bernstein analyst Lance Wilkes maintained a Buy rating on Humana (HUM – Research Report) today and set a price target of $313.00.
Lance Wilkes has given his Buy rating due to a combination of factors that highlight Humana’s potential for growth and recovery. He points out that the company is well-positioned to benefit from the recovery of Medicare Advantage (MA) and Medicaid margins, which are expected to stabilize. This stabilization is anticipated to lead to a deceleration in utilization rates to more normal levels, making the current valuation levels attractive for investors.
Furthermore, Wilkes identifies several emerging catalysts that could positively impact Humana’s performance. These include signs of margin recovery in MA and Medicaid, emerging utilization data from hospitals and managed care organizations (MCOs) that should alleviate concerns about margin pressure, and a reduction in policy uncertainty. The improved clarity on healthcare policies, particularly regarding Medicare, Medicaid, and safety net programs, is expected to act as a catalyst for the company’s stock performance. Overall, Wilkes maintains an optimistic outlook on Humana’s future prospects, supporting his Buy rating.
In another report released on March 20, Wells Fargo also maintained a Buy rating on the stock with a $337.00 price target.