Kevin Fischbeck, an analyst from Bank of America Securities, reiterated the Hold rating on Humana. The associated price target remains the same with $300.00.
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Kevin Fischbeck has given his Hold rating due to a combination of factors surrounding Humana’s growth prospects and potential risks. Despite Humana’s strong performance in the third quarter, concerns arise from its lack of clarity on 2026 earnings per share projections and the possibility of membership growth exceeding market comfort levels. This anticipated growth could lead to challenges in maintaining the Medical Loss Ratio (MLR) targets.
Fischbeck highlights that while Humana is confident in its pricing strategy and growth outlook, the unique competitive environment and historical patterns suggest potential risks. The company’s decision to maintain benefits in 2026, unlike its peers who are cutting benefits, could result in significant member growth and associated MLR issues. Consequently, until more clarity is achieved regarding these growth dynamics and their impact on financial metrics, Fischbeck maintains a Neutral stance with a price objective of $300.