Humana price target raised to $270 from $255 at Barclays

Barclays analyst Andrew Mok raised the firm’s price target on Humana (HUM) to $270 from $255 and keeps an Equal Weight rating on the shares. The firm maintains a cautious view on the upcoming Stars lawsuit decision, but acknowledges a more compelling risk/return profile for investors willing to absorb near-term volatility and look through to Humana’s earnings growth in 2027 and beyond. Barclays assumes Humana can offset about 30% of the gross $3B stars headwind, which would result in a net $2B headwind worth about 210 basis points to Individual Medicare Advantage margin.