Wells Fargo downgrades Humana to Equal Weight on margin concerns

As previously reported, Wells Fargo analyst Stephen Baxter downgraded Humana (HUM) to Equal Weight from Overweight with a $290 price target For managed care organizations, the firm is most constructive on Medicare Advantage with uncertainty high for Medicaid/Exchanges. Wells sees a more difficult backdrop for hospitals in 2026 as post-COVID tailwinds wane and legislative risks near. Distributor debate remains revisions vs. multiples. Regarding Humana, the firm is more cautious on achievability of the company’s margin objective in 2026 given lack of benefit cuts.