Humana (HUM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Erin Wright from Morgan Stanley maintained a Hold rating on the stock and has a $290.00 price target.
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Erin Wright’s rating is based on a combination of factors that reflect both the strengths and challenges facing Humana. The company is focusing on clinical excellence and operational leverage, which are within its control and are expected to drive an earnings turnaround. Humana is making efforts to improve clinical outcomes by directing patients to the most appropriate care settings, which is anticipated to enhance patient satisfaction and economic performance.
However, Erin Wright also considers the uncertainties that lie outside of Humana’s control, such as changes in Stars cut points, Medicare Advantage program funding, and competitive actions. These factors have been approached conservatively in Humana’s financial projections for 2025 to 2028. While the company has potential for operational improvements, the impact of external factors and the need for transformative initiatives like tech enablement and AI contribute to the Hold rating.
In another report released on June 18, Barclays also maintained a Hold rating on the stock with a $268.00 price target.