Jefferies analyst David Windley downgrades $Humana (HUM.US)$ to a hold rating, and adjusts the target price from $419 to $253.
According to TipRanks data, the analyst has a success rate of 63.0% and a total average return of 11.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Humana (HUM.US)$'s main analysts recently are as follows:
The anticipated performance of Humana is thought to be contingent upon the outcome of their appeal with CMS, following the reported decrease in the 2025 Star ratings for the payment year 2026. It is suggested that a resolution may not be reached by the commencement of open enrollment.
For 2025, a mere 25% of Humana's members are projected to be enrolled in bonus-qualified plans, a stark decrease from the 94% in the previous year. The preliminary star results have reportedly fallen short of investors' anticipations and are perceived as a notable risk factor for the company's financial outlook for 2026.
Humana is reportedly one metric away from reaching the pivotal 4-Star threshold in three of its four affected plans, which could be a significant advantage if their appeal prevails. Despite potential setbacks, there's a positive outlook for the company's capacity to recover in the following year. The company's leadership is exploring various mitigation strategies, although it's premature to offer detailed guidance at this point. The recent developments have cast some uncertainty over the organization's journey to achieving its 3% margin goal by 2027.
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