Raymond James says pullback in Humana shares creates buying opportunity

Raymond James analyst John Ransom notes that Humana (HUM) was down on reports that the cut points for 2026 Stars Ratings, set to be officially announced in October, have gotten harder. This potentially pours cold water in hopes that the company could regain a portion of its lost Stars Ratings for 2026, a year ahead of management’s expectations. Given the 50% rally in the stock off the bottom before yesterday, the firm senses that an improvement in Stars Ratings was increasingly being priced into the stock. In Raymond James’ opinion, the stock was getting a little ahead of itself. The recent pullback creates an attractive buying opportunity, with the implied 2028 valuation now sitting at 6.7x EPS, the firm argues. Raymond James has an Outperform rating on the stock.