Evercore ISI notes that Humana (HUM) has released an update on its preliminary MA Star ratings for 2026 and stated that about 1.2M or 20% of members would be enrolled in plans rated 4 stars and above for 2026 and reaffirmed its FY25 EPS guidance of $17.00 per share. The company also noted that for 2026 they received an average Star rating of 3.61, which is largely in line with its 2025 Star ratings, and that 14% of total members are in 4.5-star plans for 2026. As a reminder, 2026 Stars is based off performance data from 2024 and will impact Humana in payment year 2027. Evercore says that while the 8-K may be disappointing to bulls, over the past week or so, the firm saw the buyside probability of regaining stars for H5216 in particular fall and there were market suggestions yesterday that Humana had lost stars, which caused the stock to be down, limiting the impact of today’s disclosure. Evercore has an In Line rating on the name with a price target of $295.
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