Humana price target lowered to $265 from $400 at RBC Capital

RBC Capital analyst Ben Hendrix lowered the firm’s price target on Humana to $265 from $400 but keeps an Outperform rating on the shares. The firm is introducing a FY26 EPS estimate for the company at $16.99 – down from its forecast of $20.00 for FY25 – after the company’s 8-K last week confirmed a star ratings decline based on preliminary Medicare Advantage performance data, the analyst tells investors in a research note. RBC adds however that the valuation still gives credit for mitigation initiatives for 2027 and leaves some upside for potential success with pending appeals.