Stephen Baxter, an analyst from Wells Fargo, maintained the Buy rating on Humana (HUM – Research Report). The associated price target remains the same with $348.00.
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Stephen Baxter has given his Buy rating due to a combination of factors that indicate Humana’s strong potential for earnings growth. The company has outlined a strategic focus on recovering its Medicare Advantage (MA) margins and improving its operational performance, which includes accurate diagnosis and cost management. This focus is expected to enhance Humana’s medium-term earnings power, with an EPS target for 2028 projected to be around $40, surpassing general expectations.
Furthermore, Humana’s efforts to drive operating leverage through tactical cost programs and strategic growth initiatives are anticipated to yield significant improvements. The company expects to achieve 150-180 basis points of operating leverage by 2028. Additionally, Humana’s plans to improve its star ratings to the top quartile, even if not reaching 95% of members rated 4 stars, suggest a positive trajectory in its performance metrics. These factors collectively contribute to Baxter’s optimistic outlook on Humana’s stock.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $316.00 price target.
HUM’s price has also changed slightly for the past six months – from $233.890 to $241.450, which is a 3.23% increase.