Humana price target lowered to $196 from $260 at BofA

BofA lowered the firm’s price target on Humana (HUM) to $196 from $260 and keeps a Neutral rating on the shares. Humana reported “a fairly in line quarter” and initiated 2026 EPS guidance of $9, which was 24% below consensus at $11.90, but “didn’t feel conservative in the context of 25% membership growth,” the analyst tells investors. The question is “less about 2026 EPS than 2027,” because even a big 2026 miss, if caught in time, can be fixed if management is committed to margins, but it won’t be clear whether or not there is an issue until Q2 when claims development is more complete, lowering visibility in the near term, the analyst added.