Humana price target raised to $262 from $195 at UBS

UBS raised the firm’s price target on Humana (HUM) to $262 from $195 and keeps a Neutral rating on the shares. The update reflects an improved Medicare Advantage final rate notice, with near-term trends tracking in line to better than expected, though additional claims data is needed to confirm there is no medical loss ratio pressure from newer members, the analyst tells investors in a research note. The higher rate provides Humana with more flexibility in 2027 bidding strategy to prioritize margin improvement, while future upside will depend in part on Star Ratings progress that would affect 2028 earnings, UBS says.