Humana (HUM) has received a new Hold rating, initiated by Evercore ISI analyst, Elizabeth Anderson CFA.
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Elizabeth Anderson CFA has given her Hold rating due to a combination of factors related to Humana’s current market position and future prospects. The company, with a market cap of approximately $33 billion, is focused on Medicare Advantage and is expected to grow its adjusted EBIT at a low double-digit rate post-2028. However, the medium-term outlook remains uncertain, particularly with the competitive dynamics that could affect pricing and member growth in 2026.
While Humana’s management has a plan to achieve top-quartile Stars performance by 2028, which could positively impact earnings per share, there are concerns about execution risks and the potential for mispricing in the near term. The current valuation of Humana’s stock reflects a balance between these risks and opportunities, with a pathway to the $295 price target contingent on achieving clarity in areas such as Stars performance, operating leverage, and the 2026 Annual Enrollment Period. Therefore, the Hold rating reflects a cautious approach given the potential upside and existing uncertainties.
In another report released on September 10, TR | OpenAI – 4o also downgraded the stock to a Hold with a $300.00 price target.