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Positive Outlook for Humana: Buy Rating Supported by Strategic Initiatives and Growth Projections

Positive Outlook for Humana: Buy Rating Supported by Strategic Initiatives and Growth Projections

Analyst Ann Hynes of Mizuho Securities maintained a Buy rating on Humana, with a price target of $300.00.

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Ann Hynes has given her Buy rating due to a combination of factors that suggest a positive outlook for Humana despite some challenges. Humana has reaffirmed its 2025 earnings per share guidance and reiterated its long-term earnings growth plan, which indicates confidence in its financial stability and future performance. The company anticipates growth in its Medicare Advantage membership in 2026 and is implementing a diversification strategy for its contracts, which is expected to improve its star ratings and financial outcomes over time.
While the preliminary 2026 Medicare Advantage Star Ratings were not as high as desired, Humana has made improvements and expects to return to top quartile results by 2027. The company is also confident in its pricing and benefit design for 2026, which is expected to enhance margins and support membership growth. These strategic initiatives, along with the expectation of a return to stronger star ratings, underpin the Buy rating as they position Humana for future success.

In another report released on September 26, Bernstein also maintained a Buy rating on the stock with a $341.00 price target.

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