Barclays notes that the judge presiding over Humana’s (HUM) Stars lawsuit ruled in favor of CMS to dismiss the suit because the company prematurely filed before having exhausted the administrative appeals process, pointing out that the case was dismissed without prejudice, meaning Human can refile the lawsuit at a later date. While negative, a lawsuit loss was the base case laid out in the EPS and margin recovery targets the company laid out in its June investor day and “potentially serves as a clearing event,” says the analyst, who adds that the firm’s current 2026 EPS estimate of $13.03 reflects a Stars loss scenario. Barclays has an Equal Weight rating and $268 price target on Humana shares.
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