Humana downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Humana to Neutral from Overweight with a price target of $540, down from $576. The analyst believes the combination of Medicare Advantage cost trend uncertainty and the election cycle limits near-term upside for the managed care group. The firm like Humana’s long-term exposure to Medicare Advantage, but prefers more diversified managed care names over the near-term given uncertainty around 2023 utilization and 2024 pricing.