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Humana investors assumed low odds of Stars suit success, says Wells Fargo

After the Texas Northern District Court dismissed Humana’s (HUM) Star ratings lawsuit challenging payment year 2026 ratings, Wells Fargo analyst Stephen Baxter says that that news has no impact on forward star rating cycles and contends that investors had generally assumed the suit had a low probability of success. The firm, which adds that the “only clear benefit would have been incremental cash,” has an Overweight rating with a $348 price target on Humana shares.

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