Humana upgraded to Outperform from Market Perform at Raymond James

Raymond James upgraded Humana (HUM) to Outperform from Market Perform with a $315 price target The company’s Q1 results that were better than expected and it cited that Medicare Advantage costs are running in line with expectations at mid-single-digits, the analyst tells investors in a research note. The firm says the upgrade is less about the quarter and more about an improving backdrop for in Medicare Advantage. It sees upside to Humana’s margins over the next two years, driven by flattening cost trend, an improving rate environment, and more conservative bids.