BofA lowered the firm’s price target on Humana (HUM) to $260 from $320 and keeps a Neutral rating on the shares, stating that the company’s new three-year plan targets 2028 EPS implied at $36-$43, which is “roughly in line” with the prior three-year target of $37 for 2025 provided in 2022. The target relies on $4B in cost cutting and margin improvement, which “seems aggressive” given the lower revenue base, but Humana assumes it does not win back the Medicare Advantage Stars it has lost, so this could represent upside if the company does, the analyst tells investors following the company’s investor day meeting.
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Read More on HUM:
- Humana price target lowered to $280 from $305 at Truist
- Balanced Outlook for Humana: Growth Potential Amidst Uncertainties
- Cautious Hold on Humana Amid Aggressive Turnaround Targets and Uncertainties
- Senate Republicans abandon Medicare cost cuts, Bloomberg reports
- Humana price target lowered to $268 from $273 at Barclays
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