Oppenheimer analyst Michael Wiederhorn lowered the firm’s price target on Humana to $370 from $415 and keeps an Outperform rating on the shares. The firm says Humana handily topped Q1 2024 expectations and maintained FY2024 guidance, highlighted by improving IP trends in March, leading to an in-line MLR without any contribution from favorable Q4 PPRD that seems likely. Looking forward, management pulled its 2025 growth guidance of $6-$10 EPS due to the rate pressures and TBC limitations, and also extended its return to 3% margins beyond 2026, says Oppenheimer. Overall, Humana continues to face the magnified impact from MA due to its significant exposure, but also boasts a portfolio with significant long-term margin upside, the firm adds.
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Read More on HUM:
- Humana Inc Reveals Quarterly Financial Performance and Projections
- Humana no longer believes $6-$10 of adjusted EPS growth is appropriate for 2025
- Humana backs FY24 adjusted EPS view ‘approximately’ $16.00, consensus $16.36
- Humana reports Q1 adjusted EPS $7.23, consensus $6.12
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