UBS analyst Kevin Caliendo maintains $Humana (HUM.US)$ with a hold rating, and adjusts the target price from $370 to $250.
According to TipRanks data, the analyst has a success rate of 55.6% and a total average return of 4.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Humana (HUM.US)$'s main analysts recently are as follows:
The performance of Humana is seen to hinge on the outcome of their appeal with CMS concerning the reported decrease in the 2025 Star ratings for payment year 2026. It is considered 'unlikely' that a resolution will be reached by the commencement of open enrollment.
For 2025, a mere 25% of Humana's members are enrolled in plans eligible for bonuses, a stark decrease from 94% in the previous year. According to the analyst, the preliminary star results did not meet investor expectations and present a considerable risk factor for the company's financial outlook for 2026.
Following a review of Star ratings, analysts indicate that Humana is close to reaching the crucial 4-Star threshold in three of the four affected plans, a factor that could become significant pending the outcome of the appeal. Regardless of the appeal's result, there's a positive outlook for the company's potential to recover in the following year. Management is exploring all possible options to mitigate the situation, although it's premature to provide precise guidance due to the numerous variables at play. This recent update has raised questions about the company's ability to achieve its 3% margin target by 2027.
Note:
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