Humana price target lowered to $285 from $301 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Humana (HUM) to $285 from $301 and keeps an Equal Weight rating on the shares after having walked away from the company’s Q4 report and call with questions around just how long the Stars turnaround will take outside of the ongoing policy year 2026 litigation, which the analyst says is “seemingly more nebulous and potentially extending” into policy year 2027. The firm reduced its price target on uncertainty around Stars, stating that the Stars overhang “remains a key swing factor” in the company’s timeline to achieve target Medicare Advantage margins.