RBC Capital analyst Ben Hendrix maintains $Humana (HUM.US)$ with a buy rating, and adjusts the target price from $400 to $265.
According to TipRanks data, the analyst has a success rate of 58.8% and a total average return of 9.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Humana (HUM.US)$'s main analysts recently are as follows:
The performance of Humana is anticipated to hinge significantly on the outcome of their appeal with CMS, especially following the reported decrease in the 2025 Star ratings for the payment year 2026. However, it is considered 'unlikely' that a resolution will be reached by the commencement of open enrollment.
The firm has revised its future earnings per share estimate for Humana downward for FY26 to $16.99 from the earlier forecast of $20.00 for FY25, following the company's recent 8-K filing which indicated a drop in star ratings based on preliminary Medicare Advantage performance data. Despite this, the valuation accounts for mitigation initiatives planned for 2027 and also considers the potential benefits from successful pending appeals.
The complexity of Humana's recovery narrative has increased, despite the annual repricing opportunity and the potential for enhanced star ratings with its Medicare Advantage plans. Without effective star appeal initiatives, the prospect of returning to normalized margins may extend past 2027.
Note:
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