Wells Fargo analyst Steve Baxter maintains $Humana (HUM.US)$ with a buy rating, and maintains the target price at $387.
According to TipRanks data, the analyst has a success rate of 48.6% and a total average return of 3.8% 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 anticipated to hinge on the outcome of their appeal with CMS regarding the recent decline in the 2025 Star ratings for payment year 2026. It is considered 'unlikely' that a resolution will be reached by the beginning of open enrollment, according to an analyst.
For 2025, Humana's coverage for members under bonus-qualified plans is anticipated to decrease significantly to 25% from 94% the previous year. The preliminary star results were below investors' expectations and present a notable risk to the company's financial performance in 2026.
The overall recovery narrative for Humana has grown increasingly complex, despite the inherent flexibility in Medicare Advantage plans to adjust pricing annually and the potential for improved star ratings. Without effective star appeal efforts, the timeline for the company to return to normalized margins could extend beyond 2027.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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