RBC downgrades Humana on Medicare Advantage cost pressure

RBC Capital analyst Ben Hendrix downgraded Humana (HUM) to Sector Perform from Outperform with a price target of $189, down from $322. The firm believes stronger than expected membership growth through the annual election period may put Humana’s Medicare Advantage book at risk for cost pressure above the company’s initial 2026 guidance. Given the company’s “outsized growth” in an uncertain reimbursement backdrop, RBC sees a balanced risk/reward setup for Humana shares at the current multiple.